[RAM] RAM Ratings affirms MTT Shipping's ratings at AA3/Stable/P1

RAM Ratings has affirmed MTT Shipping Sdn Bhd’s (the Company) AA₃/Stable/P1 corporate credit ratings, reflecting the Company’s strong market leadership and robust financial profile that is still supportive of its planned regional expansion, underpinned by resilient cashflow generation and disciplined debt management practices. The ratings also apply to its Islamic Medium-Term Notes and Islamic Commercial Papers Programme with a combined aggregate limit of RM1.5 bil.

MTT Shipping is expected to maintain its leading market position in the domestic container liner shipping sector, anchored by its established presence. Despite the inherent volatility of the global shipping industry, MTT Shipping benefits from its larger exposure to Peninsular Malaysia-East Malaysia routes, which offer more stable trade volumes and less volatile freight rates, and the reinstatement of Sarawak’s cabotage policy in June 2024.

In November 2025, MTT Shipping and Logistics Berhad – the holding company for MTT Shipping – launched its exposure draft prospectus for a proposed initial public offering. We have yet to consider the exercise in our rating assessment and will reassess the company’s credit profile upon completion and make the market updates, as necessary. All projection assumptions are based on ‘without IPO’ scenarios, as provided by MTT Shipping.

MTT Shipping’s extended fleet expansion plan, with average annual capital expenditure of RM368 mil over fiscal year 2025 and 2026, is expected to be largely funded by strong cashflow generation. As a result, leverage and debt coverage metrics are expected to remain sound, even under conservative growth scenarios. Under RAM’s stressed projections of minimal growth in container shipping volumes and lower rates and utilisation in charter hire contracts, the Company’s funds from operations debt coverage and gearing ratio are projected at an average of 0.50 times and 0.44 times, respectively, over the two years.


Analytical contacts
Amira Shamsul, CFA
(603) 2708 8242
syahira@ram.com.my

Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my

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