(The following was released by the rating agency)
SINGAPORE (Standard & Poor's) Oct. 5, 2012--Standard &
Poor's Ratings Services said today that it had raised its
long-term corporate credit rating on Indonesia-based plantation
company PT Bakrie Sumatera Plantations Tbk. (BSP) and its
subsidiary Agri International Resources Pte. Ltd. (Agri
International) to 'CCC' from 'CCC-'. The outlook on both the
ratings is stable. We removed the ratings from CreditWatch,
where they had been placed with developing implications on July
18, 2012. We then withdrew all the ratings at the companies'
We raised the ratings on the two companies to bring them in
line with our recently updated criteria (see "Criteria For
Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings," published
Oct. 1, 2012, on RatingsDirect on the Global Credit Portal).
At the time of the withdrawal, the ratings on BSP and Agri
International reflected our expectation that both the companies
would generate sufficient cash flows to be able to service their
debt over the next 12 months. The rating outlooks on BSP and
Agri International at the time of withdrawal reflected our view
that the companies would be able to refinance their debt
maturities over the same period. A recent fall in palm oil
prices could constrain the companies' cash flows.
RELATED CRITERIA AND RESEARCH
-- Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC'
Ratings; Oct. 1 2012
-- 2008 Corporate Criteria: Analytical Methodology, April