RAM Ratings has affirmed the AA3/Stable rating of IJM Corporation Berhad's (IJM Corp or the Group) RM3.0 bil Sukuk Murabahah Programme. The AA3(s)/Stable/P1(s) ratings for the RM5.0 bil Islamic Medium-Term Notes Programme and Islamic Commercial Papers Programme, issued under IJM Treasury Management Sdn Bhd, are also affirmed. These ratings reflect the credit profile of IJM Corp as provider of an irrevocable and unconditional guarantee based under the shariah principle of Kafalah.

The affirmation reflects IJM Corp's robust business profile and resilient earnings, underpinned by a rapidly expanding construction order book and sustained property sales. The Group's diversified businesses and strong track record in the local construction and property sectors are key rating strengths. These are further supported by a sound balance sheet, strong liquidity and financial flexibility. However, expected weakening in debt coverage metrics is a moderating factor, alongside the Group's contingent exposure to the delayed West Coast Expressway, in which it holds a 43% stake, and vulnerability to foreign exchange and interest rate movements.

IJM Corp's construction segment continues to demonstrate strong momentum, with significant new contract wins in infrastructure, industrial facilities and data centres. These have lifted its outstanding order book from RM6.56 bil as at end-March 2025 to an estimated RM9.3 bil as at end-October 2025. Including joint ventures and associates, the total order book stands at a sizeable RM14.4 bil, which includes major projects such as data centres in Johor and Selangor (RM3.6 bil) and the New Pantai Highway Extension (RM1.4 bil). However, a softening property market has resulted in lower property sales and unbilled sales, with the latter declining to RM1.6 bil as at end-September 2025 from RM2.6 bil (end-March 2024).

IJM Corp's core pre-tax profit (excluding unusual items) was 11.2% higher in FY March 2025, driven primarily by improved constr