Local rating agency PT Pemeringkat Efek Indonesia (Pefindo) affirmed its idA ratings of CPO producer PT BW Plantation Tbk and its outstanding bond I/2010. The outlook of the corporate rating is stable.
The ratings reflect BWPT’s favorable operating management, strong cash flow protection, and good plantation profile. However, the ratings are offset by risks related to BWPT’s sizable business expansion, moderate financial policy, and its exposure to unfavorable weather.
Established in November 2000, BWPT is a crude palm oil (CPO) producer whose oil palm plantations are located in Kalimantan.
At end of June 2011, the company’s land bank area including plasma was amounted to 99,775 hectares (ha) consisting of 56,476 ha oil palm planted area and 43,299 ha unplanted area. BWPT is now supported by 579 employees and equipped with 2 palm oil located in Central Kalimantan.
Disclosure: No position at the stock mentioned above.
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