Singapore, 03 July 2019 - Moody's Investors Service has affirmed the Baa1 issuer rating of Sime Darby Plantation Berhad (SDP).

At the same time, Moody's has affirmed the (P)Baa1 rating on the $1.5 billion senior unsecured medium-term note programme of its wholly owned subsidiary, Sime Darby Global Berhad and the Baa1 senior unsecured debt rating on the sukuk issued by Sime Darby Global Berhad.

The outlook is maintained at stable.

RATINGS RATIONALE

"While weak palm oil prices have reduced SDP's earnings, we expect the company will maintain its credit profile through substantial debt reduction using the proceeds from its planned MYR1.0 billion asset sales this year," says Maisam Hasnain, a Moody's Analyst.

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