Moody’s cuts Pelindo II BCA

Moody's Investors Service said it affirmed PT Pelabuhan Indonesia II (Persero)'s (Pelindo II) Baa3 issuer and senior unsecured ratings.

The agency also lowered Pelindo II's baseline credit assessment (BCA) to ba1 from baa3, reflecting the company's standalone credit quality.

The outlook is positive.

"Pelindo II's BCA reflects its leading position in Indonesia's ports sector with high barriers to entry and the continued favorable domestic industry dynamics," Moody's vice president and senior credit officer Ray Tay said in a news release.

"However, the BCA considers Pelindo II's plan to undertake significant expansionary capex in the next three years, resulting in potential weakening in its financial metrics to levels that are more consistent with a BCA of ba1."

© 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.