Moody's rates Agri International notes B2

Moody's Investors Service said it assigned a B2 corporate family rating to Agri International Resources Pte Ltd., along with a B2 rating to the $150 million five-year dollar-denominated senior secured notes issued by special purpose vehicle, AI Finance BV, and guaranteed by Agri International and Agri Resources BV.

The outlook is stable.

The ratings reflect the company's close relationship with Bakrie Sumatera Plantations Tbk (rated B2) given Bakrie Sumatera will manage Agri's plantations and crushing mills for annual management and marketing fees, Moody's said. The rating also recognizes the potential yield and productivity improvements in the palm oil plantations under Bakrie's management and the favorable state of industry fundamentals, the agency added.

Counterbalancing these positive factors is the company's privately owned status - hence concerns about corporate governance and transparency - relatively small scale, short operating track record, historically low yield and exposure to volatile crude palm oil price movements, Moody's said.

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