Moody’s upbeat on IOI outlook, riding on earnings’ growth, higher CPO prices

Moody's expects that the company will likely use the proceeds to acquire brownfield plantation estates in Malaysia. If IOI has not identified a suitable target, it can extend the time frame to complete an investment beyond the current extended time frame of December 2022.

KUALA LUMPUR: Moody’s Investors Service expects IOI Corporation Bhd’s leverage to decline due to stronger earnings growth amid high crude palm oil (CPO) prices and debt reduction.

In its report on Monday, it expects IOI's adjusted leverage -- as measured by adjusted debt/earnings before interest, tax, depreciation and amortisation (Ebitda) -- to decline to around 2.5 times over the next 12-18 months from 3.3 times for the fiscal year ended June 2021.