S&P lowers Bakrie Sumatera

Standard & Poor's said it lowered the long-term corporate credit rating on PT Bakrie Sumatera Plantations Tbk. to CC from CCC+.

The agency also said it lowered the long-term corporate credit rating on Agri International Resources Pte. Ltd. to CC from CCC+, along with Agri's guaranteed $150 million senior secured notes due July 15 to CC from CCC+.

All the ratings remain on CreditWatch, where they were first placed with negative implications in May, S&P said.

AI Finance BV, a wholly owned subsidiary of Indonesian plantation company Agri International, issued the notes.

Bakrie Sumatera is taking longer than expected to finalize a loan to repay the guaranteed notes of its subsidiary Agri International, S&P said.

Any further delay would substantially increase the risk of default by Agri, the agency said. Due to a cross default clause in Bakrie syndicated bank loan documents, a default on Agri International's notes would be tantamount to a default by Bakrie, S&P said.

© 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.