Withhold release order against Sime negative

Moody's Investors Service said this situation could damage SDP’s relationship with customers and other stakeholders, while large losses in earnings, if any, could weaken its credit profile.

PETALING JAYA: Moody’s Investors Service said the United States Customs and Border Protection withhold release order (WRO) against palm oil giant Sime Darby Plantation Bhd’s (SDP) products, which is premised on forced labour allegations, is credit negative.

The rating agency said this situation could damage SDP’s relationship with customers and other stakeholders, while large losses in earnings, if any, could weaken its credit profile.