RAM reaffirms Time dotCOM’s RM1b IMTN Programme

KUALA LUMPUR: RAM Rating Services Bhd had reaffirmed the “AA 3/Stable: rating of Time dotCom Bhd’s RM1 billion Islamic medium-term notes (IMTN) Programme (2015/2035), anchored by the company’s strong performance in the 2017 financial year.

In a statement yesterday, RAM Ratings said it expected Time dotCom to maintain its sturdy financial profile, despite potentially significant capital expenditure for expansions within Malaysia and overseas.

The ratings agency said Time dotCom had carved a niche in the domestic fixed-line telecommunications sector by offering competitive and flexible pricing plans, and provided good network quality and reliability, which remained as the key contributor to the group’s revenue.

It said the company’s data centre segment also enjoyed strong revenue growth as the number of customers and uptake of services kept increasing.

“We expect the enterprise segment to remain the lynchpin of the group’s top line, as demand for broadband usage from large corporations and an uptake of its data centre services continued to rise,” it said.

RAM Ratings also expected contribution from the company’s retail segment to continue increasing as Time dotCom focused on expansion of its fibre optics network coverage in key high-rise residential buildings in the peninsular.