Bulletin: Jardine Matheson To Balance Deleveraging And Investments

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 15, 2024--Jardine Matheson Holdings Ltd.'s investment appetite should not hurt deleveraging. Steady cash flows from the conglomerate's diversified businesses and debt reduction in the property business will help in this regard. Hong Kong-based Jardine's adjusted debt to EBITDA ratio was 2.2x in 2023, higher than our forecast of 2.0x. The rise was mainly due to a lower cash balance at Astra International Tbk. PT (foreign currency: BBB+/Stable/--; local currency: A-/Stable/--). The Indonesian subsidiary declared outsized dividends on the back of strong earnings from higher commodity prices. It also invested into nickel and other smaller projects in the healthcare and energy sectors. Astra will likely maintain its

...March 15, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 15, 2024--Jardine Matheson Holdings Ltd.'s investment appetite should not hurt deleveraging. Steady cash flows from the conglomerate's diversified businesses and debt reduction in the property business will help in this regard. Hong Kong-based Jardine's adjusted debt to EBITDA ratio was 2.2x in 2023, higher than our forecast of 2.0x. The rise was mainly due to a lower cash balance at Astra International Tbk. PT (foreign currency: ###+/Stable/--; local currency: A-/Stable/--). The Indonesian subsidiary declared outsized dividends on the back of strong earnings from higher commodity prices. It also invested into nickel and other smaller projects in the healthcare and energy sectors. Astra will likely maintain its investment appetite, given its intent to increase non-coal revenues. However, its dividend payout should normalize amid weaker commodity prices. Meanwhile, we believe leverage at...

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