S&P lowers Pelindo III

S&P said it lowered its long-term corporate credit rating on PT Pelabuhan Indonesia III (Persero) (Pelindo III) and the issue rating on the company's senior unsecured notes to BB+ from BBB-.

The outlook is stable.

“We lowered the rating on Pelindo III because we project higher leverage to fund significantly elevated capital spending plans,” the agency said in a news release.

“We believe Pelindo III's leverage tolerance has increased, given the acceleration of its spending and investment plans associated with the Indonesian government's aim to improve nationwide sea connectivity and infrastructure, particularly before the 2019 elections.

“However, port capacities remain underutilized and the return on investments is not assured.”

© 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.