Bulletin: Jardine Matheson's Investment Buffer Has Increased

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 3, 2023--Jardine Matheson Holdings Ltd.'s solid operating trends should strengthen its financial buffer for investments in Southeast Asia. This, together with divestment of non-core assets (such as the disposal of the Malaysian grocery and U.K. motor businesses in the first half), should help the Hong Kong-based conglomerate to sustain its debt-to-EBITDA ratio below the historical level of 2.0x (compared with about 1.9x at end of June 2023), despite a strong investment appetite. Jardine's results for the first half of 2023 were better than we expected. Adjusted EBITDA grew 14% to about US$3.4 billion (58% of our prior full-year forecast), thanks to strong performance at Astra International

...August 3, 2023 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 3, 2023--Jardine Matheson Holdings Ltd.'s solid operating trends should strengthen its financial buffer for investments in Southeast Asia. This, together with divestment of non-core assets (such as the disposal of the Malaysian grocery and U.K. motor businesses in the first half), should help the Hong Kong-based conglomerate to sustain its debt-to-EBITDA ratio below the historical level of 2.0x (compared with about 1.9x at end of June 2023), despite a strong investment appetite. Jardine's results for the first half of 2023 were better than we expected. Adjusted EBITDA grew 14% to about US$3.4 billion (58% of our prior full-year forecast), thanks to strong performance at Astra International Tbk. PT (foreign currency: ###+/Stable/--; local currency: A-/Stable/--). The Indonesian subsidiary benefited from high commodity prices (especially thermal coal) and an increased market share in the automotive...

Bulletin