Fitch affirms IOI

Fitch Ratings said it affirmed IOI Corp. Bhd.'s long-term foreign-currency issuer default rating at A-following news that its subsidiary, IOI Properties Bhd., has entered into a joint venture to acquire a land parcel in Singapore at the cost of S$1.1 billion. Fitch also said it affirmed the A- senior unsecured rating on the $500 million notes due 2015 guaranteed by IOI Corp.

The outlook is stable.

Fitch said acquisition will increase the company's consolidated financial leverage, but believes that the level is still within the acceptable range for its current rating, especially given the de-leveraging potential arising from the current historical high crude palm oil prices.

However, any further investments that aren't immediately cash generating may result in a negative rating action, the agency said.

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