Moody's may cut Bakrie Sumatera Plantations

Moody's Investors Service said it has put on review for possible downgrade the B2 corporate family and secured bond rating of Bakrie Sumatera Plantations Tbk.

The action is driven by concerns over recent events surrounding PT Bakrie and Brothers Tbk's financial position and the related impact on the company's liquidity position, Moody's said.

The Indonesia Stock Exchange halted trading in shares of the six Bakrie companies - Bakrie and Brothers, PT Bumi Resources Tbk, Bakrie Sumatera Plantations, PT Bakrieland Development Tbk, PT Bakrie Telecom Tbk, and PT Energi Mega Persada - until further notice, pending clarification from Bakrie and Brothers's management, the agency said.

Moody's said it believes the company's rapidly deteriorating financial profile and the suspension of stock trading has eroded investor and creditor confidence in the company. This will negatively affect the group's business operation and liquidity profile, the agency said.

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