S&P applies BB+ to Pelindo II, bonds

Standard & Poor's said it assigned its BB+ long-term corporate credit rating to PT Pelabuhan Indonesia II (Persero) (Pelindo II).

The outlook is stable.

At the same time, the agency assigned its axBBB+ long-term Asean regional scale rating to the company.

S&P also assigned its BB+ rating to a proposed dollar-denominated bond issue by the company.

S&P said the ratings reflect the company's strong and sustainable competitive advantage in a large and growing port concession area in Indonesia. The rating also captures the company's stable profitability and cash flows adequacy ratios because of a high share of lease income from joint ventures.

Pelindo II's exposure to the high country risk in Indonesia and execution risks from a sizable, multi-year capital spending program temper these strengths, the agency said.

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