Fitch cut the credit rating of IOI Corp

Fitch has cut the credit rating of IOI Corp because the plantation group's investments in property development have increased its business risk. These investments will not generate cash immediately, the agency said. "A significant share of such new investments is in luxury condomi-nium development projects in Singapore. This, coupled with heavy cash returns to shareholders over the last 18 months, has increased its leverage considerably," Fitch added. The rating agency downgraded IOI Corp's long-term foreign currency Issuer Default Ratings (IDR) to "BBB+" from "A-". The rating's outlook is stable. The senior unsecured rating on the US$500m (RM1.81 bn) notes due 2015, guaranteed by IOI Corp, has also been downgraded to "BBB+" from "A-". (BT)