PEFINDO affirmed ?idAA-? ratings for PT AKR Corporindo Tbk and its bond

(October 09, 2013) -- PEFINDO affirmed its ?idAA-? ratings for PT AKR Corporindo Tbk. (AKRA or the Company) and its bond I/2012. The outlook of the corporate rating is ?stable?. The ratings reflect the stable demand of fuel in Indonesia, stable volume growth of fuel business in the long term, and extensive logistic infrastructure network.

However, the ratings are constrained by the risk of executing a new greenfield Integrated Industrial Port and Estate project, and exposure to the risk of price volatility and downturn in mining sector which constitutes one of the Company?s main customer segment for its Petroleum distribution business.

The Company has the main business in the trading and distribution of Petroleum and basic chemicals in Indonesia and through its subsidiaries is also engaged in logistic, manufacturing, coal mining, industrial estate, and port businesses.

In addition to its business in Indonesia, the Company has expanded its business to China by acquiring controlling stakes in a sorbitol manufacturing company and container and bulk commodity river ports in southern China. As of June 30, 2013, the Company?s shareholders consisted of PT Arthakencana Rayatama (58.8%), management (0.6%), and public (each below 5% ownership, 40.6%). (ends)