Fitch: IOI unaffected

Fitch Ratings said IOI Corp. Bhd.'s proposed acquisition of Aditya Birla Group's oleochemical and palm oil refinery operations in Malaysia does not affect its A- issuer default rating or stable outlook.

The agency said that while the acquisition will increase IOI's net debt, its credit metrics are expected to remain within the ranges that support its current rating, especially given the current high market price of crude palm oil, the company's core product.

IOI remains the most profitable publicly listed plantation operator in Malaysia and its operating strengths are expected to persist, if not improve, in the medium term, the agency said.

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