Summary: PT Chandra Asri Petrochemical Tbk. Dec 11

Standard & Poors, December 2011

Abstract
The rating on Indonesia-based petrochemical producer PT Chandra Asri Petrochemical Tbk. (CAP) reflects the cyclical nature of the commodity chemicals business, volatile feedstock costs, and the company's somewhat limited product and operational diversity. CAP's leading market position in Indonesia, favorable domestic demand, cost advantages from its domestic vertically integrated facilities, and moderate leverage partly offset the above weaknesses. CAP's financial risk profile remains aggressive in our opinion despite the progressive weakening in operating cash flows for the nine months ended Sept. 30, 2011. Production and sales have increased due to a merger with PT Tri Polyta Indonesia Tbk. and higher oil prices; but elevated naphtha costs and weaker product prices due to the uncertain economic outlook have reduced margins and...

Companies mentioned in this report are: PT Chandra Asri Petrochemical 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 Chandra Asri Petrochemical Tbk.

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