Moody’s Investors Service has affirmed the Baa2 issuer rating of IOI Corporation Bhd (IOI), the Baa2 backed senior unsecured bond ratings of IOI Investment (L) Berhad, and the Baa2 backed senior unsecured bank credit facility rating of IOI Ventures (L) Bhd.
Moody’s has also affirmed the provisional (P)Baa2 backed senior unsecured rating on IOI Investment (L) Berhad’s medium-term note (MTN) program.
At the same time, Moody’s has maintained a stable outlook on the ratings.
Moody’s has also assigned Baa2 backed senior unsecured rating to the proposed notes to be issued under IOI Investment (L) Bhd’s MTN program. The notes are unconditionally and irrevocably guaranteed by IOI Corporation Berhad and will rank pari passu with all of IOI Corporation Bhd’s senior unsecured obligations.
“The rating affirmation reflects our expectation that IOI will maintain profitable operations while taking a prudent approach to investment and shareholder returns, such that they do not materially weaken the company’s credit profile,” says Maisam Hasnain, a Moody’s Vice President
and Senior Analyst.
“The proceeds from the proposed notes issuance will help IOI alleviate refinancing risk associated with its $600 million notes due in June 2022, while allowing it to maintain strong liquidity,” adds Hasnain, who is also Moody’s lead analyst for IOI.
OUTLOOK
The outlook is stable, reflecting Moody’s expectation that IOI will issue new US dollar notes to refinance its large debt maturity in June 2022, while maintaining its credit profile by keeping to a conservative approach on investments and shareholder returns, with strong liquidity and continued adherence to sustainable palm oil production policies.
