S&P: Sime Darby issues axAAA

Standard & Poor's said it assigned an axAAA Asean regional scale rating to two issuances under an Islamic medium-term notes program by Sime Darby Bhd.

The issuances consist of a 300 million of Malaysian ringgit due Dec. 9, 2022; and 400 million in Malaysian ringgit due Dec. 10, 2027.

The proceeds will be used for capital expenditure, working capital, general corporate purposes and refinancing debt obligations, S&P said.

The ratings reflect the group's strong business risk profile and modest financial risk profile, S&P said.

Sime Darby strong competitive positions in three key businesses: plantation, industrial and motors, the agency said.

These positions reflect the long record, large operating scale and integrated operations of these businesses, S&P said.

The company's increased appetite for investments, higher tolerance for debt-to-fund capital expenditure, and execution risks temper these strengths, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.