Fitch lowers Saratoga

Fitch Ratings said it downgraded PT Saratoga Investama Sedaya Tbk.’s national long-term rating to BBB+(idn) from A(idn).

The outlook is stable and rating was removed from Rating Watch negative, where it was placed in October, Fitch said.

The downgrade follows a review of the key rating metrics on the company, the agency said.

Fitch said it initiated the review because dividends that Saratoga will receive are expected to be lower than previously anticipated due to slower domestic economy growth and weak commodity prices.

The agency also said its forecast for debt at the end of 2015 is about 45% higher than the end of 2014 and higher than previously estimated.

Foreign-exchange risk also has increased with a higher level of U.S. dollar-denominated debt and the weakness of the rupiah in the last year has highlighted this concern, Fitch said.

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