MARC Ratings has affirmed the AAIS /AA ratings on funding vehicle OSK Rated Bond Sdn Bhd's (OSKRB) Sukuk Murabahah/ Multi-Currency Medium-Term Notes (Sukuk/MCMTN) Programmes with a combined limit of up to RM3.5 billion. The ratings outlook is stable. The ratings apply only to ringgit-denominated sukuk/notes issued under the programmes. The programmes carry an unconditional and irrevocable guarantee from OSKRB's parent, OSK Holdings Berhad (OSK).

OSK's steady group financial profile, reflected in its sizeable equity base and diversified earnings, remains a key rating driver. Moderating the ratings are demand risks in the property development business, as well as potential credit risks arising from the continued expansion of its capital financing portfolio. For 1H2026, group revenue and pre-tax profit increased by 9.5% and 9.3% y-o-y to RM997.7 million and RM323.1 million, respectively, supported by stronger contributions from the property, financial services and hospitality segments as well as a higher share of profit from its 10.27% interest in RHB Bank. These gains were partly offset by weaker profitability in the industries segment, mainly due to higher operating costs at the Johor Bahru cable plants and elevated raw material prices.

OSK's ongoing domestic property developments had a combined gross development value (GDV) of about RM3.4 billion and an average take-up rate of 51% as at end-June 2026. The moderation in take-up from 56% a year earlier largely reflects the addition of newer launches, while established developments continued to record satisfactory sales. Domestic unbilled sales of about RM876 million continue to provide earnings visibility over the near term. In Australia, sales at Melbourne Square have been encouraging, with the high-rise BLVD residential tower achieving an 81% take-up rate, while AURA, another residential tower launched more recently in April 2026, recorded 15% take-up. The group's 2,407-acre landbank, with an estimated GDV ofa