Summary: PT Bakrie Sumatera Plantations Tbk. Jun 11

Standard & Poors, June 2011

Abstract
The rating on PT Bakrie Sumatera Plantations Tbk. (BSP) reflects the company's large short-term debt maturities, aggressive expansion into downstream assets, and exposure to the cyclicality in crude palm oil (CPO) and rubber prices. The steady demand for CPO, which we expect will sustain over the next one to two years, partly offsets these weaknesses. In addition, BSP's management has an established record and experience in the plantation business. BSP's largely debt-funded expansion program is aggressive, in our view. The company has more than tripled its palm plantations in the past three years. It had about 113,000 hectares (ha) under palm cultivation as of Dec. 31, 2010. BSP owns about 60% of this cultivable area and its subsidiary Agri International...

Companies mentioned in this report are: PT Bakrie Sumatera Plantations Tbk.
Action: Review

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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

PT Bakrie Sumatera Plantations Tbk.

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