RAM Ratings affirms AA2(s)/P1(s) ratings of debt programmes issued by PROTON's SPV

RAM Ratings has affirmed the AA2(s)/Stable rating of the RM4.0 bil Islamic Medium Term Notes Programme (2021/2051) and P1(s) rating on the RM1.0 bil Islamic Commercial Papers Programme (2021/2028) issued by PONSB Capital Berhad, a special purpose vehicle (SPV) of Perusahaan Otomobil Nasional Sdn Bhd (PROTON or the Company). The programmes have a combined limit of RM4.0 bil.

The (s) suffix reflects the credit strength of PROTON - acting as the purchase undertaking obligor and its parent, Proton Holdings Berhad (Proton Holdings or the Group). The credit profile of the two entities are equated given their highly
interconnected operation and financial profiles. 

Proton Holdings continues to maintain its position as Malaysia's second-largest automotive player, supported by strong brand recognition, an extensive sales and service network and a series of successful product launches. The Group's recent
launches - including e-MAS 5, Malaysia's first affordable electric vehicle, the redesigned Saga based on the Advanced Modular Architecture platform and a new plug-in hybrid electric vehicle (PHEVs) version of e-MAS 7 - are expected to help keep the Proton marque's market share at a strong 20%, despite industry competition and regulatory pressure. That said, the inherent cyclicality of the automotive sector and the residual impact of legacy losses continue to moderate the ratings. 

Proton Holdings' unit sales declined 1.0% to 153,237 units in 2024, below the industry's 2.1% growth in total industry volume (TIV) to 816,747 units. However, sales rebounded in 2025, rising 3.1% driven by the facelifted X50 and the new Saga, raising market share to 19.2% (2024: 18.1%). This outperformed the industry's muted 0.5% TIV growth of to a record 820,752 units for the year. Profitability strengthened with operating profit before depreciation, interest and tax (OPBDIT) climbing 11.8% in 2024 and1