PEFINDO affirms “idAA” ratings to PT Pelabuhan Indonesia IV (Persero) and its Bond
Friday, April 16 2021 - 10:06 PM WIB
(April 15, 2021)--PEFINDO has affirmed “idAA” ratings to PT Pelabuhan Indonesia IV (Persero) (PIKI) and its Bond I Year 2018. The outlook for the corporate rating is “stable”.
An obligor rated idAA differs from the highest rated obligors only to a small degree, and has a very strong capacity to meet its longterm financial commitments relative to that of other Indonesian obligors.
The rating reflects our view of the government’s strong likelihood of support for PIKI, its resilient revenue stream during unfavorable global conditions, and its above average operating performance. The rating is constrained by the limited economy of its service area, its moderate financial profile, and the high exposure to economic and regulatory changes.
The rating has incorporated proper execution of PIKI’s investment plans. The rating may be raised if PIKI’s expected returns from new investments are higher than projected, particularly from the development of Makassar New Port (MNP), thus improving its financial profile to a more conservative level. On the other hand, the rating may be lowered if we view a reduction in government support, such as through a material divestment of ownership. The rating could also be under pressure if the Company incurs substantially larger debt than projected and/or its new investments are not well executed and/or if there are material decreases in the volume of container and cargo movement that result in a weaker financial profile on a prolonged basis.
PIKI is a state-owned seaport operator, providing seaport service facilities through 25 port branches and 3 container terminals across 10 provinces in Indonesia: South Sulawesi, Central Sulawesi, Southeast Sulawesi, North Sulawesi, Gorontalo, East Kalimantan, Maluku, North Maluku, Papua, and West Papua. Supported by three subsidiaries — PT Kaltim Kariangau Terminal, PT Nusantara Terminal Service, and PT Equiport Inti Indonesia — it provides several kinds of port services, including ship, cargo, container, and passenger services. PIKI is wholly owned by the government. (ends)