Fitch lifts Ivo Mas Tunggal view to positive

Fitch Ratings said it revised PT Ivo Mas Tunggal's outlook to positive from stable.

Its national long-term rating was affirmed at AA (idn).

The outlook revision reflects the improved access of majority shareholder, Golden Agri Resources, to debt and capital markets following successful issuance in 2012 of close to $1 billion of debt, Fitch said.

This suggests that bond investors are no longer averse to the group due to its history of debt restructuring, which had in the past constrained its ability to raise borrowings, the agency said.

Fitch said it views Golden Agri's improved funding access is a direct benefit to its subsidiaries, including Ivo Mas Tunggal as they mostly rely on intercompany loans for expansion plans.

The ratings continue to reflect Ivo Mas Tunggal's strong strategic and operational linkages with Golden Agri Resources, the agency said.

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