Fitch lowers Pelindo III stand-alone rating

Fitch Ratings said it revised the outlook on PT Pelabuhan Indonesia III (Persero)'s (Pelindo III) to stable from positive 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-.

Fitch also said it lowered Pelindo III's standalone rating from BB+ to BB, reflecting the lower than expected margins and higher than expected capital expenditure plan in the medium term.

This will translate into weaker metrics in 2017 through 2020 due to its higher debt to finance the elevated capital expenditure, the agency said.

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