Kuala lumpur: RAM Rating Services Bhd (RAM Ratings) has upgraded the long-term ratings of YTL Corporation Bhd's (YTL Corp) debt programmes to AAA, citing sustained improvements in the group's operating performance, profitability, and financial profile.

According to BERNAMA News Agency, RAM Ratings announced that the outlook on the facilities has been revised to stable from positive, while the short-term rating remains at P1. "The rating upgrade reflects demonstrated and sustained improvements in YTL Corp's fundamental operating and financial profile, underpinned by robust performance across the group's core investments," it stated.

RAM Ratings noted that YTL Corp's return on capital employed (ROCE) increased to eight to ten percent over the past two years, up from approximately five percent previously. This improvement was supported by resilient earnings across its regulated utilities, cement, hospitality, and property segments. "The group's diversified business portfolio, further complemented by excellent liquidity and financial flexibility, continues to provide substantial financial buffers and leverage headroom," RAM Ratings added.

In a separate statement, RAM Ratings also upgraded the long-term ratings of YTL Power International Bhd's sukuk programmes to AAA, with a stable outlook, while the short-term rating remains at P1. It mentioned that this upgrade was due to sustained improvements in YTL Power's operating and financial profile, with the group's return on capital employed rising to about nine percent over the past three years, up from 3.6 percent in the financial year ended June 30, 2021 (FY2021).

RAM Ratings further stated that these improvements are supported by YTL Power's sturdy track record in long-term, regulated concession businesses, primarily infrastructure and utilities, as well as its superior liquidity and financial flexibility, which provide substantial financial buffers and leverage headroom. YTL Power's operating profit before depreciation, interest, and tax reportedly tripled over five years to RM6.5 billion in FY2024, with pre-tax profit exceeding RM2 billion annually.