KUALA LUMPUR: Sime Darby Plantation Bhd’s (Sime Plantation) large debt refinancing is credit positive to improve its liquidity and extend debt maturities, Moody’s Investors Service said. However, Moody’s expects Sime Plantation’s liquidity to remain weak as its cash sources may be insufficient to meet scheduled debt maturities, capital spending and dividends through December 2020. “Thus, Sime Plantation's projected CFO could be higher than our projections should CPO prices remain at current high levels for a sustained period,” it added. Sime Plantation had refinanced about 49 per cent or RM3.9 billion of its total debt in December 2019. “Proforma for the refinancing, we estimate Sime Plantation's short-term debt as a proportion of total debt declined to around 28 per cent from 77 per cent as of September 30, 2019,” Moody’s said.

Source: New Strait Times February 06, 2020 10:41 UTC