The rating on IOI Corp. Bhd. (IOI) reflects the group's favorable plantation resources, highly competitive cost position, and synergy between key business segments, given that more than 90% of its plantations' sales are to its own downstream facilities. However, these are partially offset by the cyclical nature of its plantation and property businesses and its aggressive approach toward expansions and shareholder-friendly policies. In fiscal year ended June 2008, IOI increased its exposure to the risky property development business in Singapore following its Singapore dollar (S$) 1.1 billion (US$759 million) investment in 65% of the joint-venture project, the Pinnacle Collection to be undertaken by Pinnacle (Sentosa) Pte. Ltd. This project has been deferred in view of the current economic condition and