Aug 20, 2010

Pefindo assigns A for BW Plantation

Indonesia's rating agency PT Pemeringkat Efek Indonesia (pefindo) has assigned A for corporate rating of palm oil producer PT BW Plantation Tbk (BWPT), despite proposed Rp500 billion-Rp700 billion bonds issuance in November.
Analyst Doni Kuswantoro at Pefindo said the rating reflects good BW's operational management, robust cash flow, and positif plantation profile.
"But, the rating is shadowed by more agreesive of BW Plantations's financing strategy, higher exposure, and commodity price and unfavorable climate," said Pefindo.
As of June 2010,BW' land bank is around 96,175 hectares, consisting 46,048 hectares planted area and 50,127 hectares unplanted area.

Disclosure: No position at the stock mentioned above.

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