Indofood gets AA+ rating

JAKARTA (JP): Publicly listed food producer PT Indofood Sukses Makmur has received an AA+ rating, with a stable outlook, from state rating agency PT Pemeringkat Efek Indonesia (Pefindo).

"It is the highest rating issued in Indonesia so far," company president Eva Riyanti Hutapea said over the weekend.

Eva said the high rating was partly due to Indofood's plan to issue a Rp 1 trillion (US$125 million) denominated bond in June, which would mature in five years.

"With an AA+ rating, the credit risk for bond investors will be small," she added.

Hutapea said the proceeds from the bond offering would be used to expand the group's facilities in its edible oils and fats, flour milling, baby foods and snack food division, acquisitions and general working capital requirements.

The bond offering has no relation to the company's loan obligations totaling $400 million, which will fall due in June or July, Hutapea said, adding that repayments would be funded wholly by the company's operating income.

The company's foreign currency debt was $705 million at the end of 1999, down from $910 million at the end of 1998.

This figure represents 83 percent of outstanding bank lending, she said. (07)