MARC Ratings revises Guan Chong, JB Cocoa rating outlook to negative

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC Ratings) has revised its rating outlook on the sukuk programmes of Guan Chong Bhd (AA-IS) and JB Cocoa Sdn Bhd (A+IS), to negative from stable.

“The rating action is driven by the prevailing abnormal price environment for cocoa beans, having risen steeply from US$3,835 per tonne to US$9,193 per tonne between end-October 2023 and end-March 2024, that has weighed sharply on the working capital requirement of Guan Chong and JB Cocoa,” it said in a statement.