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PT Bakrie Sumatera Plantations Tbk. Nov 11
Standard & Poors, November 2011
Sizable near term debt maturities Weak operating efficiency Fragile cash flow protection measures Steady demand for crude palm oil Established record The rating on Indonesia-based plantation company PT Bakrie Sumatera Plantations Tbk. (BSP) reflects the company's sizable debt maturities in the next 12 months and weak operating efficiency. The rating also reflects the volatility in BSP's earnings due to its exposure to the cyclicality in the prices of crude palm oil (CPO) and rubber. Our expectation of steady CPO demand over the next one to two years and the commencement of BSP's downstream facilities partly offset the above weaknesses. The BSP management's established record and experience in the plantation business also underpin the rating. In our view, BSP's likely refinancing...
Companies mentioned in this report are: PT Bakrie Sumatera Plantations Tbk.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
PT Bakrie Sumatera Plantations Tbk.