RAM assigns final rating of AA2 to first resources’ proposed sukuk musharakah
The long-term rating has a stable outlook.
"First Resources credit profile reflected its strong business profile, underpinned by its 20-year operating track record within the Indonesian plantation sector and lean cost structure," said Thong Mun Wai, Head of Real Estate & Construction Ratings, in a statement today.
In the last two years, the group has maintained its cost per metric tonne (MT) of crude palm oil at USUS$221 per MT, which is considered favourable among the more efficient Malaysian planters and stands it in good stead against industry downcycles.
First Resources, listed on the Main Board of Singapore Exchange Securities Trading Ltd, is principally involved in the upstream cultivation of oil palm, milling and refining operations in Indonesia. — Bernama