Moody's announces completion of a periodic review of ratings of Chandra Asri Petrochemical Tbk (P.T.)

(Singapore, January 23, 2020) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Chandra Asri Petrochemical Tbk (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

Chandra Asri Petrochemical Tbk (P.T.)'s (CAP) Ba3 rating reflects the company's leading position in the Indonesian petrochemical industry, diversified product portfolio and very good liquidity.

The rating is constrained by CAP's volatile operating performance because of its exposure to commodity petrochemical products, asset concentration in the Indonesian island of Java, and high capital spending over the next five years if the company proceeds with the development of a second petrochemical complex.

CAP's rating balances the cyclical nature of the petrochemical industry with scale, low-cost of operations and very good liquidity. These factors provide CAP with financial flexibility during cyclical downturns.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Chemical Industry published in March 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit. (ends)