Fitch lowers Sawit Sumbermas view to stable

Fitch Ratings said it revised the outlook on PT Sawit Sumbermas Sarana Tbk.'s long-term ratings to stable from positive.

The agency also said it affirmed the long-term foreign-currency issuer default rating at B+, along with the B+ rating and recovery rating of RR4 on the $300 million 7¾% senior notes due 2023 issued by SSMS Plantation International Pte. Ltd.

The agency also said it affirmed the company's national long-term rating at A(idn).

Fitch said it previously expected that net leverage would reduce to lower than 2.5x by 2019, but now the agency said it believes this will be challenging to achieve.

Fitch said it now expects slower de-leveraging due to increasing challenges for the palm oil industry and the likelihood of further acquisitions by the company to expand its acreage.

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