In its report on Monday, it expects IOI's adjusted leverage -- as measured by adjusted debt/earnings before interest, tax, depreciation and amortisation -- to decline to around 2.5 times over the next 12-18 months from 3.3 times for the fiscal year ended June 2021.
In addition, the high CPO price has boosted earnings at IOI's plantations segment in recent quarters, despite lower CPO production amid heavy rainfall and a decline in mature planted hectarage as older trees were replanted. Maisam Hasnain, a Moody's vice president and senior analyst said:"The ratings 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.”