RAM Ratings has affirmed the long-term rating on TIME dotCom Berhad’s RM1 bil Islamic Medium-Term Notes Programme (2017/2037) at AA1/Stable.
The affirmation is premised on the Group’s steady and competitive business position, as well as strong financial metrics. TIME’s expanding fibre network positions it well to take advantage of growing bandwidth needs amid the rising demand for increasing digital adoption. While smaller in scale relative to its peers, it has gradually grown its fixed broadband subscriber market share to around 11% as of end-June 2026. Defying industry-wide flattening, the Group posted 6% revenue growth and 12% OPBDIT growth in fiscal 2025 (1H2026: 7% and 21%, respectively).
RAM said TIME’s business profile comprises a wide range of connectivity and service integration solutions to retail, enterprise and wholesale customers. TIME is well-positioned to benefit from ongoing digitalisation trends and supportive government policies aimed at advancing the digital economy. Aside from its niche home and enterprise broadband, the Group also has wholesale connectivity, enterprise solutions and cloud services businesses, alongside a 30% stake in data center operator AIMS. It is also expanding into rooftop solar and EV charging, although contributions from the new complementary segments remain modest. These factors are expected to drive further growth and provide additional competitive advantages.
Financially, TIME’s credit metrics remained superior on the back of strong top- and bottom-line growth, strengthening OPBDIT margins and minimal debt and net cash position. While the Group has begun leveraging up to optimise its capital structure, the medium-term net debt-to-EBITDA internal target of 1.00-1.50 times remains within its rating band.
Under the rating agency’s stressed assumptions and analysis of slower growth and margins as well as higher capex and investment assumptions (circa RM0.6 bil per annum as compared to an average RM0.4 bil spent in the last three years), its FFODC and gearing ratios are expected to average 0.84 times and 0.37 times respectively, for fiscal 2026-2028.
RAM added that TIME’s credit metrics remain robust even under the stressed assumptions, with sufficient headroom against rating sensitivities. As part of its balance sheet optimisation strategy, TIME recently tapped the rated sukuk programme for a RM500 mil issuance, marking its first sizeable drawdown since inception.
While the advent of 5G may erode retail fixed broadband demand over time, it could also unlock growth through backhaul fiber infrastructure leasing and wholesale connectivity services. The agency views this to be a longer-term risk, and do not expect the criticality of TIME’s fibre network to be impacted overnight.
