Moody's affirms IOI

Moody's said it affirmed the A3 foreign-currency issuer rating and debt ratings of IOI Corp. Bhd., along with the A3 rating of the debts issued by IOI Ventures Bhd. and guaranteed by IOI.

The outlook is stable.

The affirmation follows IOI's announcement of a capital distribution of a maximum of RM$1,375 million to shareholders and a share split of one into five shares.

The capital return will be funded by internal cash without the need to raise any further debt, Moody's said. In the absence of any major acquisition, it does not materially alter the credit metrics of IOI.

IOI's rating continues to reflect the favorable demand outlook for palm oil, as well as IOI's efficient operations and its position as a global top tier palm oil producer, the agency said.

The rating also reflects, however, the cyclical nature of IOI's core businesses in palm oil production and property development, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.