KUALA LUMPUR: The modification of forced labour finding by the United States (US) Customs and Border Protection (CBP) is credit positive for Sime Darby Plantation Bhd (SDP) as its serves as acknowledgment from an independent third party that the company’s products under scrutiny were no longer being produced with forced labour, said Moody’s Investors Service.
In a note today, it said this also removes the risk of further sanctions as a result of forced labour finding by the US CBP in January 2022, which could have led to a weakening in SDP’s credit quality if left unchecked.
