Moody's affirms IOI

Moody's Investors Service said it affirmed the A3 issuer rating of IOI Corp. Bhd., along with its A3 senior unsecured rating of the debts issued by IOI Ventures (L) Bhd. and guaranteed by IOI.

The outlook remains negative.

The affirmation follows news that IOI's will invest in a 65% joint venture property project in Sentosa through its property subsidiary, IOI Properties Bhd. The project, which has a land cost of about S$1.1 billion, involves constructing a 602,359 square-foot condominium building.

Debt financing for the project is not expected to be substantial, Moody's said. IOI's consolidated key credit metrics, as measured by its debt-to-EBITDA ratio and EBITDA/interest, will remain in the range of 3.1.x and 2.2x to 8.7x and 10.3x, which matches a weak A3 credit, the agency said.

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