Fitch lowers Barito Pacific

Fitch Ratings said it downgraded PT Barito Pacific Tbk.’s long-term issuer default rating to B from B+.

“The downgrade reflects our revised assessment of Barito's group credit profile to b+ from bb-, due to an increase in the group's net leverage and weakening holdco EBITDA interest cover. Barito, being a holding company, relies on cash upstreaming from PT Chandra Asri Petrochemical Tbk. (CAP, BB-/Stable) and Star Energy Group Holdings Pte Ltd.

“Fitch rates Barito one notch below the group credit profile (with CAP and Star Energy proportionately consolidated), given its fractured shareholding in the key business – CAP and Star Energy – and cash flow subordination arising from restrictive covenants on debt at the operating entities,” the agency said in a press release.

The outlook is stable.

© 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.