S&P affirms Davomas

Standard & Poor's said it affirmed its B+ rating on PT Davomas Abadi Tbk, and assigned a B+ rating to the proposed $25 million long-term senior secured bonds to be issued by Davomas International Finance Co. Ltd., a special purpose financing vehicle wholly owned by Davomas.

The outlook is stable.

The new notes are a further issuance of and are in addition to the $125 million principal amount of the 11% guaranteed senior secured notes due 2011 issued in May 2006. Proceeds will be used to fund power generation facilities.

The rating reflects the company's single site operating risk and limited product range. The cocoa processing industry is highly competitive, and it takes less than two years to build a midsize plant, the agency said.

However, the agency said the ratings reflect strengths that include the company's established export-oriented business with all sales in dollars and based on market prices. The company also has a strong domestic market position and favorable industry outlook, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.