Fitch cuts IOI notes to BBB+

Fitch Ratings said it downgraded IOI Corp. Bhd.'s long-term foreign-currency issuer default ratings to BBB+ from A-, along with the senior unsecured rating on the $500 million notes due 2015 guaranteed by IOI Corp. to BBB+ from A-.

The outlook is stable.

The downgrade is due to the rise in the company's business risk stemming from significant investments made in property development operations that are not expected to positively contribute to its cash generation over the short- to medium-term, Fitch said.

The luxury condominium market in Singapore has weakened significantly from its peak in 2007, the agency said.

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