KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has affirmed its MARC-1/AA- ratings on IJM Corp Bhd’s RM1.0 billion Commercial Paper/Medium Term Notes Programme with a stable outlook.
In a statement today, MARC said the ratings action incorporated the satisfactory operating performance of its plantation, property and infrastructure segments, as well as the holding company’s broadly adequate liquidity and favourable financial flexibility.
"The higher year-on-year pre-tax profits posted by the three segments in the financial year ended March 31, 2011 have helped to offset the losses of its construction segment and weaker performance at its industrial segment," it said.
MARC noted that there was an easing of the pressure on the holding company’s cash flow and liquidity in financial year 2011 on account of higher dividends received from subsidiaries, the repayment of advances by subsidiaries and lower investment outflows.
It added constraining the ratings was the cyclicality of its construction and property development businesses, the heavy capital spending required for its Indonesia-based oil palm plantation operations, and the drag on profitability exerted by IJM’s construction and toll road operations in India. - BERNAMA
In a statement today, MARC said the ratings action incorporated the satisfactory operating performance of its plantation, property and infrastructure segments, as well as the holding company’s broadly adequate liquidity and favourable financial flexibility.
"The higher year-on-year pre-tax profits posted by the three segments in the financial year ended March 31, 2011 have helped to offset the losses of its construction segment and weaker performance at its industrial segment," it said.
MARC noted that there was an easing of the pressure on the holding company’s cash flow and liquidity in financial year 2011 on account of higher dividends received from subsidiaries, the repayment of advances by subsidiaries and lower investment outflows.
It added constraining the ratings was the cyclicality of its construction and property development businesses, the heavy capital spending required for its Indonesia-based oil palm plantation operations, and the drag on profitability exerted by IJM’s construction and toll road operations in India. - BERNAMA
