S&P: Bakrie Sumatera unchanged

Standard & Poor's said that PT Bakrie Sumatera Plantations Tbk.'s (B/stable) acquisition of a 20% equity stake in joint venture Agri Resources BV and even a potential consolidation of the joint venture with Bakrie Sumatera, will likely not have an adverse impact on the ratings or outlook on Bakrie Sumatera and its foreign currency notes.

There is some uncertainty on the timing and likelihood of Bakrie Sumatera acquiring a majority stake in the joint venture, the agency noted.

When that is clearer, S&P said it will reassess Bakrie Sumatera's rating, based on the company's acquisition funding plans, capital expenditure and investment plans for the joint venture.

While no adverse impact is envisaged based on the details available, a weakening in financial profile upon majority equity holding in the joint venture, reflected by credit measures such as debt to EBITDA above 4.0x on a sustained basis, would pressure the ratings, S&P added.

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