Fitch: IOI unchanged

Fitch Ratings said that IOI Corp. Bhd.'s long-term foreign-currency issuer default rating of BBB+ is unaffected by its proposed acquisition of additional oil palm plantations in Malaysia for RM 830 million.

The outlook is stable.

The acquisition, if completed, will marginally increase IOI's plantation land in Malaysia, Fitch said.

The agency noted that the estates under consideration have an average maturity profile with yields significantly inferior to those of IOI's existing plantations.

But, Fitch said it believes that efficiency of these plantation assets can be significantly enhanced under IOI's management.

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