Fitch rates Ciliandra Perkasa note B+

Fitch Ratings said it assigned B+ long-term foreign- and local-currency issuer default ratings and an A-(idn) national long-term rating to Indonesia-based PT Ciliandra Perkasa and a B+ rating with a recovery rating of RR4 to the $150 million senior secured notes issued by Ciliandra Perkasa Finance Co. Pte. Ltd. and guaranteed by Ciliandra and its subsidiaries.

The outlook is stable.

The agency said Ciliandra's ratings are constrained by its aggressive financial profile, its exposure to the commoditized palm oil industry, its large capital expenditure plan until the end of 2009 and the risks associated with a planned forward integration into bio-diesel production. Taking the notes issue into account, Ciliandra has projected a total debt-to-EBITDA ratio of 4.5x for the year ending December.

The ratings draw support from the company's favorable maturity profile, the geographic location of its plantations and the fact that its revenues are primarily dollar-based, Fitch said.

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