Fitch cuts Sawit Sumbermas to B-

Fitch Ratings said it downgraded PT Sawit Sumbermas Sarana Tbk.’s long-term foreign-currency issuer default rating to B- from B+.

The agency also cut the rating to B- from B+ on the $300 million of notes sold by the company’s subsidiary SSMS Plantation Holdings Pte. Ltd.

Fitch downgraded Sawit Sumbermas’ national long-term rating to BBB-(idn) from A(idn).

The downgrade is based on the consolidated profile of the company’s parent, PT Citra Borneo Indah, which owns a 54% stake, Fitch said.

“Several of CBI's subsidiaries, outside of SSMS, are loss-making; therefore, we assess the parent, ex-SSMS, to have a weaker credit profile. We also deem legal and operational linkages between SSMS and CBI to be strong, as SSMS's U.S.-dollar notes have a cross-default clause covering CBI and its subsidiaries outside of SSMS,” Fitch said in a news release.

The outlook is stable.

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