Bakrie International gets BBB- rating

Bakrie International gets BBB- rating

JAKARTA (JP): The Japan Bond Research Institute (JBRI) has
assigned a BBB- rating to the foreign currency notes (euro notes)
of Bakrie International Finance Company B.V to be issued under
the Medium Term Notes Program.

JBRI has also assigned a BBB- rating to PT Bakrie and
Brothers' rupiah notes to be issued under the same program.

The Japanese rating agency said yesterday the Triple B- rating
reflected its diversified and stable cash flow derived from the
company's solid operational base of three core businesses:
telecommunications, infrastructure support and plantation.

Bakrie & Brothers expects the largest earnings contribution
from its telecommunications sector, the company's most profitable
core business with strong future prospects.

It engages in landline installations under revenue sharing
programs with state-owned telecommunications company PT Telkom
and the installation and operation of fixed wireless lines
through a joint venture with PT Telkom.

Bakrie & Brothers also maintains a solid operational base in
its infrastructure support division which boasts the largest
domestic market share of welded pipes and seamless pipes for oil
and gas industries, the rating agency said.

The agency added that Bakrie's rubber plantation business is
internationally competitive. It conducts rubber trading through
subsidiary Lewis & Peat which maintains a global trading market
share of 11 percent.

The company's balance sheet is exposed to relatively large
foreign exchange risk, mostly offset by currency hedging, it
said.

PT Bakrie & Brothers was established in 1942 and was listed on
the Jakarta Stock Exchange in 1989. It has three main core
businesses: telecommunications, infrastructure support (mainly
consisting of steel pipe manufacturing) and plantations.

About 44 percent of its shares are owned by Bakrie Investindo
and 13.76 percent by the Bakrie family. (08)