PT Mayora Indah gets 'A' long-term credit rating<\/p>\n
JAKARTA (JP): Pefindo, Indonesia's only credit rating agency,
\nhas given an "A" long-term credit rating to publicly listed PT
\nMayora Indah and its fixed-rate Rp 300 billion (US$122.85
\nmillion) bonds which will mature in 2004.<\/p>\n
Pefindo said the rating outlook of the company, which produces
\nbiscuits, cookies and sweets, was stable.<\/p>\n
The rating reflected Mayora's strong position in the growing
\ndomestic biscuit and confectionery markets, supported by its
\ndiversified product mix and wide marketing and distribution
\nnetwork, Pefindo said.<\/p>\n
"Mayora's dominant 20 to 25 percent market share in this very
\ncompetitive fragmented industry demonstrates its ability to enter
\ndifferent market segments and maintain its market presence
\nthrough strong brand name recognition," the company said.<\/p>\n
The variety of product lines protects the company from loosing
\nagainst fierce competition from domestic and multinational
\ncompanies, it said.<\/p>\n
The company planned to keep launching new products and expand
\nproduction to sustain its market position and expand its earnings
\nsources, it said.<\/p>\n
Mayora's target was the mid to low range market and this gave
\na competitive advantage, it said.<\/p>\n
But, competitive pressures are expected to increase and
\nMayora's products were easy to duplicate, it said.<\/p>\n
Pefindo said the rating took into account Mayora's
\nconservative financial policy.<\/p>\n
It said its expansion over the past three years was funded
\nmostly with equity and internally generated funds. A large cash
\nbalance had led to a very small net debt, it said.<\/p>\n
"In fact, on Dec. 31 last year, cash and short term
\ninvestments exceeded debt liabilities," it said.<\/p>\n
It said Mayora spent less on marketing than its competitors,
\nand might need to spend more to defend its market position. But
\nthis would not put much pressure on its profitability, it said.<\/p>\n
Pefindo said it expected Mayora's sustainable market position
\nto produce stable profit and favorable cash flow protection.
\n(das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-mayora-indah-gets-a-long-term-credit-rating-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}