KUALA LUMPUR, Oct 2 — RAM Rating Services Bhd (RAM Ratings) has reaffirmed the AA1(s)/Stable and P1(s) ratings of F&N Capital Sdn Bhd’s RM750 million medium-term notes programme (2013/2028) and RM750 million commercial papers programme (2013/2020).

The rating agency said F&N Capital’s debt facilities are backed by full, unconditional and irrevocable corporate guarantees from its parent company, Fraser & Neave Holdings Bhd (F&N Holdings).

As such, the ratings reflect the credit profile of the group, it said.

"The reaffirmation of the ratings is based on the performance of F&N Holdings, which is largely within our expectations. The group is anticipated to retain its dominance in the Malaysian food and beverages industry,” RAM Ratings said in a note today.

It said the ratings are also supported by F&N Holdings’ dominance in several beverage and dairy segments.

Despite its reduced market share, the group still leads the overall ready-to-drink segment in Malaysia, accounting for 24.5 per cent of this sphere’s sales in fiscal 2018, the rating firm said.

"We note that F&N Holdings has a diversified product line-up and enjoys some degree of geographical diversity (via its operations in Thailand and rising exports).

"That said, the group’s soft-drinks operations depend much on 100Plus, which generates half of the division’s sales volumes and substantially all of its profit,” it added. — Bernama