Production recovery and high CPO prices led to solid 1Q17 results for plantation companies we monitor.

Credit Flash: 1Q17 results

·         Production recovery and high CPO prices led to solid 1Q17 results for plantation companies we monitor.

·         Credit metrics were mixed with improvements seen for FRL, BAL and GAR, while KLK and TSH were generally steady.

·         We remain very cautious of GAR as weaker CPO price outlook in 2H17 may potentially lead to higher refinancing risk amid lumpy maturities.