Research Update: Jardine Matheson Holdings Ltd. Assigned 'A+' Rating With Stable Outlook; Proposed U.S. Dollar Bonds Rated 'A+'

We expect Jardine Matheson Holdings Ltd. to maintain its strong cash flows over the next 24 months, given its diversified portfolio of long-term assets across Asia that has remained resilient through business cycles. Although Jardine Matheson's planned acquisition of a minority stake in Jardine Strategic will push up the group's leverage, we believe the group will gradually reduce its leverage and maintain its conservative financial policy. The group has significant financial resources in addition to its portfolio of cash-generating assets. We are assigning our 'A+' long-term issuer credit rating to Jardine Matheson and our 'A+' long-term issue rating to JMH Co. Ltd.'s proposed U.S. dollar bonds that Jardine Matheson guarantees. The stable outlook reflects our view that Jardine Matheson will

...- We expect Jardine Matheson Holdings Ltd. to maintain its strong cash flows over the next 24 months, given its diversified portfolio of long-term assets across Asia that has remained resilient through business cycles. - Although Jardine Matheson's planned acquisition of a minority stake in Jardine Strategic will push up the group's leverage, we believe the group will gradually reduce its leverage and maintain its conservative financial policy. The group has significant financial resources in addition to its portfolio of cash-generating assets. - We are assigning our 'A+' long-term issuer credit rating to Jardine Matheson and our 'A+' long-term issue rating to JMH Co. Ltd.'s proposed U.S. dollar bonds that Jardine Matheson guarantees. - The stable outlook reflects our view that Jardine Matheson will likely bring its leverage down to below 2.0x gradually through cash flows from operations and potential divestments....

Research Update