RAM Reaffirms Digi’s AAA/Stable/P1 Ratings of MYR 5 Billion IMTNs and MYR 1 Billion ICP

RAM Ratings (RAM) has reaffirmed Digi Telecommunications (Digi)’s respective ratings of its MYR 5 billion Islamic Medium-Term Notes (IMTN) Programme (2017/2032) at AAA/Stable and MYR 1 billion Islamic Commercial Papers (ICP) Programme (2017/2024) at P1, which are subject to a combined limit of MYR 5 billion.

The ratings reflect Digi’s established position in the mobile services industry in Malaysia, as well as strong profitability and robust cash flow. The ratings also factor in Digi’s relationship with its ultimate shareholder Telenor ASA, which has a 49% stake. According to RAM, Telenor Group has 180 million subscribers across nine countries, which gives Digi an advantage of yielding economies of scale through network modernisation efforts.

Howeve...