[RAM] RAM Ratings upgrades TIME's sukuk to AA1 on steady expansion and sustained robust credit metrics

RAM Ratings has upgraded the long-term rating on TIME dotCom Berhad’s (TIME or the Group) RM1 bil Islamic Medium-Term Notes Programme (2017/2037) to AA₁ from AA₂. The rating outlook has concurrently been revised stable from positive. 

The upgrade reflects TIME’s steady business growth, strong fibre segment franchise and sustained superior financial metrics. Over the past decade, TIME has established itself as a leading fixed broadband provider for high-rise buildings, with the segment representing the Group’s largest business segment. Although smaller in scale relative to its industry peers, TIME has demonstrated above average growth, achieving a five-year compound annual growth rate of 8.7%, with a 10% subscriber market share. 

TIME is well-positioned to benefit from ongoing digitalisation trends and supportive government policies aimed at advancing the digital economy. These factors are expected to drive further growth across its retail, wholesale and enterprise divisions. The Group’s international bandwidth, data center investments and cloud computing services provide additional competitive advantages.

Financially, TIME has demonstrated consistent topline growth over the past five years. Operating profit before depreciation, interest and tax (OPBDIT) margins have remained strong, exceeding 40% (1H 2025: 41.96%). Strong operational cash flows of around RM600 mil annually and a large cash balance (end-June 2025: RM508.7 mil) have kept borrowings minimal, with annual capital expenditure (capex) of around RM300 mil and generous dividend payouts fully funded internally. A high return on capital employed of 10%-17% over the past five years, underscores the Group’s prudent and disciplined expansion, both domestically and regionally. 

Despite projected capex and investment outflows of RM1.2 bil over the next three years, TIME is expected to preserve its superior leverage position (net cash since 2014) and robust cash flow coverage, outperforming rated peers. Credit metrics are anticipated to remain resilient, even assuming lower OPBDIT margins and modest revenue growth.

The rollout of the 5G network presents long-term risks to fixed broadband demand, particularly if cellular players deliver greater speeds and connectivity at lower prices. We do not, however, expect the critical role of TIME’s fibre network to be materially impacted in the near term.


Analytical contacts
Neo Xue Wei, CFA
(603) 2708 8241
xuewei@ram.com.my

Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my

Media contact
Sakinah Arifin 
(603) 2708 8212
sakinah@ram.com.my