MARC Ratings has affirmed SD Guthrie Berhad's corporate credit rating at AAA. Concurrently, the rating agency has also affirmed its rating on SD Guthrie's Perpetual Subordinated Sukuk Programme (Perpetual Sukuk) of up to RM3.0 billion at AAIS. The two-notch rating differential between SD Guthrie's corporate credit rating and the Perpetual Sukuk rating is in line with MARC Ratings' methodology on notching principles of subordinated and hybrid instruments. The ratings outlook is stable.

SD Guthrie's very strong market position in upstream crude palm oil (CPO) operations, well-established track record and strong balance sheet remain key rating drivers. These strengths are underpinned by the group's healthy cash flow generation, of about RM3.0 billion p.a. over the last four years, from its sizeable and geographically diversified upstream operations. The rating agency also views that this financial strength enables the group to absorb additional costs arising from regulatory changes in the plantation industry.

SD Guthrie's corporate credit rating benefits from a one-notch uplift from its standalone rating of AA+ based on the rating agency's assessment of support from parent Permodalan Nasional Berhad. Notwithstanding this, MARC Ratings has placed SD Guthrie's standalone rating on a positive outlook, mainly based on the group's improved capital structure and strong potential to further increase earnings diversification. This view is underscored by SD Guthrie's venture into two verticals, industrial development and renewable energy, by leveraging its vast idle and urbanised landbank. These follow the recent rebranding exercise under which SD Guthrie assumed its current name, delinking its association with the "Sime" brand.

SD Guthrie remains the worlds largest oil palm plantation owner by hectarage, spanning 566,947 ha across Malaysia (52.0%), Indonesia (32.0%), and Papua New Guinea/Solomon Islands (PNG/SI) (16.0%) as at end-June 2024. Its sustained profitabilit