Fitch lifts Pelindo III view to positive

Fitch Ratings said it revised the outlook on PT Pelabuhan Indonesia III (Persero) (Pelindo III) to positive from stable and affirmed its long-term foreign-currency issuer default rating at BBB-.

The agency also said it affirmed Pelindo III's senior unsecured rating and the rating on the $500 million senior unsecured notes due 2024 at BBB-.

The action follows the revision of the outlook on Indonesian's sovereign to positive from stable, Fitch said.

Pelindo III has a standalone rating of BB+.

The company's credit profile benefits from its strong market position with limited competition, the agency said.

The ratings also consider an expectation of weaker credit metrics over 2016 to 2019 from slower volume growth, substantial capital expenditure and broadly flat average realized tariffs in local-currency terms despite a weaker Indonesian rupiah against the U.S. dollar, Fitch said.

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