S&P: Bakrie Sumatera on watch

Standard & Poor's said it placed the B- long-term corporate credit rating on PT Bakrie Sumatera Plantations Tbk. on CreditWatch with negative implications.

The agency also said it placed the B- rating on the senior secured notes issued by BSP Finance BV on CreditWatch with negative implications.

Bakrie Sumatera irrevocably and unconditionally guarantees the notes.

The company's negotiations for a bank loan to refinance notes maturing in November are taking longer than anticipated, S&P said.

Any unexpected delay or failure to finalize the bank loan will significantly jeopardize the company's ability to repay the $185 million notes, the agency said.

S&P said it understands that Bakrie Sumatera is negotiating with banks for the loan, but is yet to receive final commitments.

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