RAM Affirms AAA Ratings On INTI’s RM300 Million MTN
RAM Ratings has affirmed the AAA(fg)/Stable rating of INTI Universal Holdings Sdn Bhd’s (INTI) RM300 million five-year guaranteed Medium-Term Notes (MTN) 2023/2028, citing the continued strength of its financial guarantee structure and improving operational outlook.
The rating reflects the irrevocable and unconditional guarantee provided by the Credit Guarantee and Investment Facility (CGIF) — a trust fund of the Asian Development Bank — which carries a top-tier rating of AAA/Stable/P1 from RAM. This external guarantee elevates the MTN’s credit standing to match that of CGIF, placing it well above INTI’s standalone risk profile.
RAM noted that INTI’s major shareholder, XJ International Holdings Co. Ltd., has made significant headway in resolving its earlier convertible bond (CB) default. The Hong Kong High Court dismissed a winding-up petition against XJ in August 2024, a decision upheld by the Court of Appeal in June 2025.
Following these rulings, XJ obtained bondholder approval for a debt restructuring and fully redeemed the remaining CBs in September 2025, effectively eliminating immediate insolvency concerns. The company’s operations were largely unaffected throughout the process, as other lenders refrained from declaring cross-defaults.
RAM added that CGIF’s guarantee covenants and restrictions functioned effectively during this period, ensuring that INTI maintained a strong balance sheet and healthy liquidity position.
On a standalone basis, INTI recorded higher revenue of RM226.9 million for the financial year ended August 2024 (FY2024), up from RM205.5 million a year earlier, driven by an 8% increase in student enrolment.
However, higher international recruitment and operating expenses led to softer earnings, with operating profit before depreciation, interest and tax (OPBDIT) easing to RM28.1 million and margins narrowing to 12.4%.
INTI’s performance showed further improvement in the first nine months of FY2025, as student enrolment rose about 20% year-on-year, indicating a stronger financial performance ahead.
RAM expects INTI’s liquidity to remain robust, supported by improving cash flows and the financial safeguards imposed under CGIF’s guarantee.
As at end-June 2025, INTI remained in a net cash position, holding RM296.4 million in cash and short-term funds against RM176.4 million in borrowings, comfortably covering its debt obligations.
