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RAM Ratings affirms Genting Plantations’ AA2 ratings
Published on 02 Dec 2025.
RAM Ratings has affirmed Genting Plantations Berhad’s (the Group) AA2/Stable/P1 corporate credit ratings and the AA2(s)/Stable ratings of the RM1.5 bil Sukuk Murabahah Programme (2015/2030) and RM2.0 bil Sukuk Wakalah Programme (Perpetual), both issued under the Group’s wholly owned funding conduit, Benih Restu Berhad. The issue ratings reflect Genting Plantations’ credit profile, given its irrevocable and unconditional guarantee on the sukuk.
The affirmation of the ratings is premised on Genting Plantations’ established track record in plantation management and healthy financial metrics. Supported by a still favourable upstream operating environment, we expect its key credit metrics to stay largely within the rating thresholds.
During the review period, Genting Plantations’ overall financial performance exceeded our expectations. Revenue in 9M FY Dec 2025 increased 12.1% y-o-y to RM2.3 bil, benefiting from higher crude palm oil prices early in the year. Operating profit before depreciation, interest and tax rose to RM680 mil (9M FY Dec 2024: RM561 mil), indicating healthy earnings growth. Although weakness in downstream manufacturing weighed on overall revenue for FY Dec 2024, earnings remained resilient supported by stronger palm product prices.
Planned investments in property and vegetable seeds ventures are projected to raise net debt to RM1.7 bil in 2026 and RM1.8 bil in 2027. Nevertheless, net gearing ratios are expected to remain moderate at 0.30 times and 0.32 times, respectively. Funds from operations net debt coverage should stay robust, ranging between 0.39 times and 0.41 times. The Group’s liquidity remained solid following the refinancing of a lumpy maturity in early 2025.
Genting Plantations’ fresh fruit bunch (FFB) production declined 2.1% y-o-y to 2.07 mil MT in FY Dec 2024 due to replanting, severe weather and biological tree stress. Continued weather disruptions including floods in some estates in Sabah and Kalimantan in early 2025, are envisaged to keep the full-year output subdued. Like all planters operating in Indonesia, Genting Plantations faces land seizure risks under the country’s evolving regulatory framework. Any impact on the Group, however, is expected to be minimal, as disputed land accounts for less than 3% of its annual FFB output.
Analytical contacts
Sean Lim, CFA
(603) 2708 8253
sean@ram.com.my
Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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