Fitch lowers Sime Darby

Fitch Ratings said it downgraded Sime Darby Plantation Bhd.'s long-term issuer default rating to BBB from BBB+. The outlook is stable.

At the same time, Fitch downgraded the company’s senior unsecured rating and the rating on its $1.5 billion sukuk issuance under its program to BBB from BBB+.

The downgrade reflects a view that the company’s leverage, measured by funds from operations, is likely to stay elevated at above 3x in the next year or two; which is not consistent with a BBB+ rating, the agency said.

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