MARC Ratings has affirmed the ratings of Tropicana Corporation Berhad's (Tropicana) RM1.5 billion Islamic Medium-Term Notes (IMTN) (Sukuk Wakalah-2020), RM1.5 billion IMTN (Sukuk Wakalah- 2024), and RM2.0 billion Perpetual Sukuk Programmes at AIS, AIS and A-IS, respectively. The ratings outlook on all three programmes has been maintained at positive.

The positive outlook reflects the group's continued efforts to balance deleveraging with the expansion of its property development activities through the acquisition of new development sites. While MARC Ratings acknowledges the significant progress made in the group's deleveraging efforts, recent debtfunded acquisitions of development land have slowed down the deleveraging progress. Proceeds from ongoing asset monetisation efforts, that are expected to be channelled towards paring down borrowings, would bring the group back on track towards its deleveraging target of a debt-to-equity (DE) ratio of below 0.60x. 

Tropicana had previously demonstrated progress in reducing borrowings and enhancing its liquidity position through the monetisation of investment properties and land parcels. Leverage improved slightly as at end-June 2026, with gross DE declining to 0.66x (2025: 0.70x), primarily driven by the repayment of borrowings following the completion of land sales. In addition, the group plans to finalise another land sale in Johor for RM489 million this year. These initiatives are viewed positively as they support the group's deleveraging efforts while providing funding flexibility to meet its working capital requirements.

The group's adequate liquidity position, comprising cash balances of RM735.1 million as at end-June 2026 and available banking facilities of RM621.2 million as at end-December 2025, provides additional comfort in meeting its operational and financial commitments. Notwithstanding the prevailing liquidity position, Tropicana plans to upsize its Sukuk Wakalah-2024 Programme limit to RM3.0 billion