JAKARTA. State-owned rating agency Peringkat Efek Indonesia (Pefindo) gave "idA-" and "idA- (sy)" rating for PT Sampoerna Agro Tbk's (SGRO) soon-to-be issued bonds, with a maximum total value of Rp 2 trillion.
The two bonds are SGRO's Shelf Registration Bonds I/2020 with a maximum value of Rp 1 trillion, and Shelf Registration Ijarah Bonds/2020 with a maximum value of Rp 1 trillion.
Agung Iskandar and Gifar Sakti, analysts from Pefindo, said that the funds obtained from the two bonds will be used by SGRO as working capital. "And pay a portion of the principal of bank loans," they explained in writing.
Pefindo gave the ratings by considering the company's business performance in 2019. "The rating is constrained by its capital structure, lower profitability margins compared to similar companies, and exposure to fluctuations in global commodity prices."
As of September 2019, SGRO's EBITDA was only Rp 392 billion, 41% lower from its record in September 2018. While its debt to EBITDA ratio rose to 7.3 times. (KR/AR)