Moody's gives Indonesia Bakrie (P)B2 rating

27 September 2006 07:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Moody’s has issued Indonesia’s Bakrie Sumatera Plantations (BSP) a (P)B2 rating, the agency said in its weekly update issued on Wednesday.

Moody’s said that this was the first time it has assigned a rating to BSP. The rating will be affirmed and removed from their provisional status upon completion of the bond issuance, it added.

The proceeds will be used to repay all existing debt of $63m and fund capital expenditures, which may include the cost of a new biodiesel plant and plantation acquisition in the next few years.

"The B2 local currency corporate family rating reflects the favourable demand outlook for palm oil, the prime state of the company’s oil palm plantations and its low production costs," said Peter Choy, Moody’s BSP analyst.

BSP is an Indonesian upstream plantation company, producing products such as crude palm oil, palm kernel oil and latex in Sumatra. It was listed on the Jakarta Stock Exchange in 1990.

By: Gina Myung
+65 6780 4359

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