KUALA LUMPUR: MARC Ratings has upgraded the ratings on several Sunway Group debt programmes, citing a stronger balance sheet following the listing of Sunway Healthcare Holdings Bhd (SHH) and continued improvement in earnings.
The rating agency, in a statement, upgraded Sunway Treasury Sukuk Sdn Bhd’s RM3bil Islamic Commercial Papers/Islamic Medium-Term Notes Programme to MARC-1IS(cg)/AAIS(cg) from MARC-1IS(cg)/AA-IS(cg).
Sunway Bhd
’s RM2bil Commercial Papers/Medium-Term Notes Programme was upgraded to MARC-1/AA from MARC-1/AA-, while its RM5bil Perpetual Sukuk Programme was raised to A+IS from AIS.
The rating on Sunway Treasury Sukuk’s RM10bil Islamic Medium-Term Notes Programme, which carries an Al-Kafalah guarantee from Sunway Bhd, was also upgraded to AAIS from AA-IS.
The outlook on all the ratings is stable.
MARC Ratings said the completion of SHH’s listing in March 2026 significantly strengthened Sunway Group’s leverage profile by expanding its equity base, despite the consolidation of SHH’s borrowings.
As at end-June 2026, the group’s debt-to-equity ratio improved to 0.62 times from 0.88 times at end-2025, while net debt-to-equity fell to 0.29 times from 0.48 times.
MARC Ratings said the improved leverage provides Sunway with additional financial headroom to support its growth plans.
Sunway’s diversified businesses in property development, construction, property investment and healthcare, along with its established market positions, remain key rating strengths. Its integrated real estate and infrastructure operations also provide a diversified earnings base.
MARC Ratings noted that these strengths are partly offset by Sunway’s sizeable debt load, moderate cash flow metrics and execution risks from its expansion plans.
The group had RM9.5bil in unbilled property sales at end-2025, while listed construction arm Sunway Construction Bhd had an outstanding order book of RM5.7bil.
MARC Ratings also pointed to Sunway’s acquisition of Sunway MCL, which has expanded its development pipeline and presence in Singapore, as well as its sizeable landbank.
Meanwhile, the property investment division continues to generate recurring income from its retail, hospitality and office portfolio. Retail occupancy averaged 97% at end-2025.
The healthcare division is also expanding through new and expanded facilities, including Sunway Medical Centre Damansara and Sunway Medical Centre Ipoh, supported by higher patient volumes and increased bed capacity.
