RAM Ratings has affirmed the AAA/Stable rating of CelcomDigi Telecommunications Sdn Bhd's RM5 bil Islamic Medium-Term Notes Programme (2017/-). 

The rating reflects the dominant mobile market position and strong financial profile of parent company CelcomDigi Berhad (CelcomDigi or the Group) after the Celcom-Digi merger. Given the close financial and operational integration between CelcomDigi Telecommunications and the Group, we assess these entities on a consolidated basis. 

CelcomDigi remains Malaysia's largest mobile telecommunications provider, with 20.3 million mobile subscribers as at end-June 2026. The Group accounted for 39% of the mobile subscriber market and 46% of industry mobile revenue, underscoring its scale and market leadership. These strengths, together with its strong cashflow generation, continue to underpin the Group's credit profile. More than 90% of network and IT integration and modernisation had been completed as at end-June 2026, with merger synergies expected to deliver annual recurring cost savings of about RM800 mil from 2027, supporting operating efficiency and earnings growth though higher 5G access fees and other operating costs may partially offset some of these margin uplift.

For FY Dec 2025, revenue increased 2% to RM12.96 bil, driven by growth in the postpaid, fibre, home and wholesale businesses. While operating profit before depreciation, interest and tax fell 5% to RM5.43 bil due to higher 5G access fees, device costs and residual integration expenses, pre-tax profit improved to RM2.10 bil, benefiting from lower depreciation and the absence of impairment charges. Total debt stood at RM14.46 bil as at end-June 2026, compared to RM13.85 bil as at end-December 2025, as the Group drew down borrowings ahead of upcoming debt maturities. Despite the higher debt balance, lease-adjusted funds from operations debt coverage remained broadly stable at 0.39 times (FY Dec 2025: 0.40 times) and continues to support the current rating.I