Fitch rates Pelindo III bonds BBB-

Fitch Ratings said it has assigned PT Pelabuhan Indonesia III (Persero)’s (Pelindo III; BBB-/stable) $500 million senior unsecured bonds a final rating of BBB-.

The dollar bonds are rated at the same level as Pelindo III's issuer default rating of BBB- because they constitute direct, unconditional and senior unsecured obligations of the company, the agency said.

Fitch noted that the company plans to use the proceeds from the bond issue to refinance some loans, fund its expansion plans and for general corporate purposes.

Pelindo III's ratings reflect its standalone credit profile, which benefits from its entrenched market position with limited competition in the regions it operates in, direct ownership of most of its assets, robust growth prospects and stable profitability and operating cash generation, the agency noted.

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