S&P rates Agri bonds B-

Standard & Poor's said it assigned a B- corporate credit rating on Agri International Resources Pte. Ltd.

S&P assigned a B- rating to the $150 million long-term senior secured bonds issued by AI Finance BV, a special purpose financing vehicle wholly owned by Agri International. Agri Resources is 20% owned by PT Bakrie Sumatera Plantations Tbk. (B/stable).

The outlook is stable.

The ratings reflect a highly leveraged position, earnings volatility and exposure to market risk, S&P said. The company's debt-to-EBITDA ratio is expected to peak at about 7 times before improving to 5 times, the agency said.

The ratings also reflect favorable industry outlook and management support from Bakrie Sumatra, S&P said.

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