Moody's affirms IOI

Moody's Investor Service said it affirmed the A3 foreign-currency issuer rating of IOI Corp. Bhd., along with the A3 rating of the debts issued by IOI Ventures (L) Bhd., guaranteed by IOI.

The outlook is stable.

The affirmation follows subsidiary IOI Land Singapore entering into a joint venture with Ho Bee Investment Ltd., to build condominiums in Singapore. The acquisition of the land in Singapore represents a geographical diversification of IOI's property development, Moody's said and the project is within the means of the group.

The 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 added.

Moody's also said it expects further improvements in the profit margin from IOI's downstream business, driven by its new Rotterdam refinery starting full operations and cost savings from the integration of the recently acquired Pan Century companies.

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