RAM Ratings affirms Yinson's A1/Stable ratings

RAM Ratings has affirmed Yinson Holdings Berhad's (the Group) A1/Stable/P1 corporate credit ratings as well as the A1/Stable ratings of its RM1 billion and RM2 billion Islamic Medium-Term Notes programmes. We have also affirmed the A3/Stable rating of its RM1 billion Subordinated Perpetual Islamic Notes Programme, two notches lower than its CCR to reflect the perpetual notes' subordinated position and the higher loss absorption characteristics given the issuer's option to defer profit distributions.

The affirmations reflect RAM's expectation that Yinson's credit metrics will remain resilient despite planned fleet expansion. The Group's nine operational floating production, storage and offloading (FPSO) vessels are backed by long-term charter contracts of up to 25 years that provide stable earnings and cash flow. Yinson's established track record and global market position support its ability to secure future projects. Following its delivery of Agogo FPSO in FY Jan 2026, two joint-venture floating storage and offloading vessels under construction are scheduled to become operational in the next 12 months.

Yinson recorded stronger earnings in FY Jan 2026, with adjusted operating profit rising to RM2.8 bil from RM1.9 bil a year earlier. Its adjusted operating cash flow (OCF) increased to about USD200 mil (circa 7% higher y-o-y and twice the FY Jan 2024 level), driven by contributions from its enlarged fleet. This translated into an adjusted OCF debt coverage of 0.06 times, which while lower than peers', remains supportive of the Group's current ratings.

As at end-July 2026, adjusted debt, excluding non-recourse borrowings, stood at RM8.1 bil, with gearing of 1.44 times. As Yinson is targeting to secure three new FPSO projects between FY Jan 2027 and FY Jan 2029, leverage may remain elevated during this expansion phase, although debt metrics are expected to improve as new assets begin generating cash flow.

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