RAM Ratings affirms Genting Plantations' AA2 ratings

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 flood