Moody’s cuts Sawit Sumbermas

Moody's Investors Service said it downgraded Sawit Sumbermas Sarana Tbk. to B2 from B1. The agency also cut the rating on the $300 million of notes sold by its wholly owned subsidiary SSMS Plantation Holdings Pte. Ltd. to B2 from B1.

Moody’s sees Sawit’s credit metrics being materially weaker than it had previously expected, said Maisam Hasnain, a Moody’s assistant vice president and lead analyst for Sawit, in a news release.

The company’s ratings reflect that of its parent Citra Borneo Indah, which consolidates Sawmit. CBI’s metrics have weakened in recent years, Moody’s said.

The outlook is negative, mirroring Moody’s estimate that CBI’s will stay weak over the next 6-12 months.

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