AAA, P1 ratings for Nestle Foods

  • Business
  • Monday, 10 Feb 2003

RATING Agency Malaysia Bhd (RAM) has assigned long- and short-term ratings of AAA and P1 for Nestle Foods (M) Sdn Bhd's proposed RM700mil Murabahah commercial papers/medium-term notes issuance facility (2003/2010) (MCP/MMTN). 

Nestle Foods is wholly-owned by Nestle (M) Bhd. Therefore, the ratings are based on the credit risk profile of Nestle Malaysia as a group, RAM said in a statement. 

The ratings reflected the group's dominant position in the packaged food and beverage market, its diverse product portfolio and strong branding. 

RAM expected Nestle Malaysia's operating cash flow to be resilient against economic cycles and the volatility in raw material prices. 

Nevertheless, the group may need to refinance a portion of the proposed MCP/MMTN, due to its practice paying out generous dividends. 

Despite this, RAM believed that it would not be at the expense of the timely servicing of Nestle Malaysia's debt obligations. – Bernama 

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