MARC Ratings has affirmed its AAAIS/Stable rating on Celcom Networks Sdn Bhd’s RM5 billion Sukuk Murabahah Programme, supported by parent company CelcomDigi Bhd’s market position, resilient cash flow and manageable debt levels.
Celcom Networks is an indirect wholly-owned subsidiary of CelcomDigi and provides telecommunications network services across the group.
In its rating assessment, MARC said CelcomDigi maintained a leading position in Malaysia’s telecommunications industry, with approximately 20.3 million subscribers and an estimated 41% market share as at end-June 2026.
Despite intense competition and limited subscriber growth, demand for connectivity and higher data consumption continued to support revenue.
CelcomDigi’s revenue increased 2.2% to RM13 billion in 2025, although earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 5.6% to RM5.47 billion due to higher network and traffic costs.
For the first half of 2026, revenue remained broadly stable at RM6.4 billion, while EBITDA margin improved to 43.5% from 42.8%, supported partly by operating cost savings.
MARC identified CelcomDigi’s potential additional funding requirements for Digital Nasional Bhd (DNB) as the principal uncertainty in its cash flow outlook.
The telecommunications group’s cumulative investment in DNB stood at RM879.9 million, with further funding potentially needed to support the 5G network operator’s operations and expansion.
CelcomDigi’s borrowings increased to RM10.6 billion as at end-June 2026, mainly reflecting DNB investments and spectrum acquisition. Its debt-to-equity ratio remained manageable at 0.67 times.
MARC said CelcomDigi’s cash flow from operations of RM4.8 billion in 2025 and RM1.5 billion in the first half of 2026 provided support for its financial commitments.
With its network integration and modernisation programme substantially completed, the group is expected to benefit from moderating capital expenditure and further operating efficiencies.
MARC also expects CelcomDigi to maintain sufficient liquidity to meet its debt obligations, including a RM350 million sukuk maturity in October 2026.
