Moody's assigns Indofood notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the planned senior unsecured notes to be sold by PT Indofood CBP Sukses Makmur Tbk., (ICBP) a subsidiary of PT Indofood Sukses Makmur Tbk.

"Once concluded, the transaction will be substantially leverage neutral and will support ICBP's excellent liquidity profile because the company will otherwise have to pay a retention amount for its Pinehill acquisition out of its internal cash sources," said Stephanie Cheong, a Moody's assistant vice president and analyst,” in a press release.

ICBP will use the proceeds primarily to make a retention payment of up to $650 million relating to its Pinehill acquisition and for general corporate purposes.

The company also plans to prepay its $307 million loan with Sumitomo Mitsui Banking Corp. on or before Dec. 31. The SMBC loan is amortizing and matures in December 2025.

The outlook is stable.

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