Malaysia's IOI Corp outlook cut to negative on 600 mln usd bond issue - Moody's

16 Nov 2007

MUMBAI (Thomson Financial) - Moody's Investors Services revised the outlook of IOI Corp Berhad's 'A3' foreign currency issuer and bond ratings to negative from stable, after the company said it plans to issue 600 mln usd of exchangeable bonds to fund the expansion of its palm oil downstream operations.'The negative outlook reflects IOI's aggressive debt-funded growth appetite which has raised its financial risk at a time when the palm oil cycle is nearing its peak,' Moody's said, adding that 'the large capital distribution in August 2007 and the proposed exchangeable bonds issuance will weaken IOI's financial profile by reducing its buffer against down-cycles.'

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