S&P raises three firms' debt ratings<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Global credit rating agency Standard & Poor's (S&P) has raised
\nits debt ratings for three Indonesian companies -- PT HM
\nSampoerna, PT Bank Mandiri and PT Bank Danamon -- citing a
\nreduced risk in their ability to service their obligations.<\/p>\n
Sampoerna, Indonesia's second largest cigarette producer, had
\nits debt ratings raised by two levels to \"BB+\" from a previous
\n\"BB-\", S&P said in a statement released on Friday.<\/p>\n
The rating outlook for Sampoerna, which was acquired by U.S.
\ntobacco giant Altria Group for US$5 billion earlier this year, is
\nnow \"stable\", meaning that the rating is unlikely to change in
\nthe short run.<\/p>\n
Both PT Bank Mandiri, the country's largest lender by assets,
\nand PT Bank Danamon, Indonesia's fifth largest bank, had their
\nratings raised by a level to \"BB-\" from \"B+\". The outlook on
\ntheir ratings were also considered \"stable\".<\/p>\n
S&P regards credit ratings of \"BBB-\" or above as investment
\ngrade. \"BB+\" is a level under the grade, while \"BB-\" is three
\nlevels below.<\/p>\n
Indonesia's rating for long-term, foreign-currency debts is
\n\"B+\", or four levels lower than the investment grade, while its
\nlong-term, local-currency credit rating is \"BB\".<\/p>\n
S&P has, since 2002, been raising Indonesia's ratings amid
\neconomic improvements, but in September changed the country's
\nrating outlook to \"stable\" from \"positive\", citing concern over
\nthe government's inability to stem the rupiah's recent slump due
\nto soaring global oil prices.<\/p>\n
S&P said it had raised the three companies' credit ratings
\nbased on the consideration that Indonesia, despite being under
\nrecent political and economic stresses, is less likely to
\nrestrict access to the foreign exchange the firms need to service
\ntheir debts.<\/p>\n
Companies considered well-insulated from direct and indirect
\nsovereign risk may even achieve a foreign-currency rating that
\nexceeds the sovereign foreign-currency rating, S&P said.<\/p>\n
Besides the three Indonesian firms, S&P has also raised its
\nratings for India's Infosys Technologies Ltd. and Tata Steel
\nLtd., the Philippines' Globe Telecom, PLDT, Universal Robina
\nCorp. and San Miguel Corp. and Thailand's Advanced Info Services.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sp-raises-three-firms-debt-ratings-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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