Fitch rates Pelindo I bonds AA(idn)

Fitch Ratings said it assigned a national rating of AA(idn) to PT Pelabuhan Indonesia I (Persero)’s (Pelindo I) proposed Rp 1 trillion bonds.

The proposed bonds are rated at the same level as Pelindo I’s national senior unsecured rating of AA(idn) as the bonds constitute senior unsecured obligations of the company, Fitch said.

The proceeds will be used to fund capital expenditure, the agency said.

Fitch said it expects Pelindo I’s business operation to remain solid as it is the only major public port operator in Northern Sumatra, Fitch said.

Pelindo I’s business growth is linked to the growth prospects of North Sumatra, which accounts for about 75% of the port operator’s revenue, the agency explained.

In 2015, North Sumatra’s economy recorded higher growth of 5.1% compared with 3.5% for Sumatra and 4.7% for Indonesia as a whole, Fitch said.

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