PEFINDO has affirmed its idAA- ratings for PT Chandra Asri Pacific Tbk

(October 2, 2025)--PEFINDO has affirmed its idAA- ratings for PT Chandra Asri Pacific Tbk (TPIA) and its outstanding bonds. Outlook for the corporate rating is stable. The rating reflects TPIA’s leading position in the petrochemical industry, which is supported by synergies with its strategic partners, vertically integrated operations with satisfactory supporting facilities, as well as strong liquidity and financial flexibility. The rating is constrained by the Company’s moderate capital structure and financial policy, sensitivity to industry cyclicality, as well as risks related to the expansion of new projects.

Our rating has incorporated the acquisition of Aster Chemicals and Energy Pte Ltd (Aster) in April 2025, Chevron Phillips Singapore Chemicals in August 2025, and the condensate splitter unit in June 2025. These acquisitions may strengthen TPIA’s vertical integration and product diversification, which will positively affect the Company’s market share and profit margin in the medium to long term after TPIA has fully operated the assets. PEFINDO views that the year 2026 will be key for TPIA as the Company is expected to complete certain rejuvenation initiatives of its new projects and generate positive profit margin. During this process, TPIA still has ample liquidity and strong financial flexibility to finance its capital expenditure, working capital, as well as maturing loans.

We may raise the rating if TPIA strengthens its operating management, as reflected by its ability to generate more EBITDA than projected and positively improve its financial profile. The rating may be lowered if we view that there is a persistent deterioration in its financial profile due to weaker-than-expected profit margins because of rising feedstock prices or declining product prices. This may result from a weaker-than-anticipated demand for petrochemical products, especially in the domestic and regional market where the Company focuses, or a higher-than-expected feedstock price. The rating may also be under pressure if TPIA’s financial flexibility deteriorates, as reflected by a lower portion of loan facilities from reputable banks, or undertakes higher than projected debt-funded expansion, resulting in a weaker financial profile.

TPIA is an integrated oil refinery and petrochemical company as well as engaged in the infrastructure business in Indonesia and Singapore. The Company produces gas oil, kerosine, gasoline, naphtha, olefins, polyolefin, styrene monomer, butadiene, methyl-tertiary-butyl-ether (MTBE), and butene-1. TPIA owns an oil refinery, an ethylene cracking complex, midstream and downstream chemical complex in Indonesia and Singapore. The Company also owned 60% of PT Chandra Daya Investasi Tbk (CDIA), an infrastructure company that is the sole distributor of electricity within 2,666 hectares in Cilegon and owns 320 megawatts (MW) combined cycle power plant, 4,874 liters per second (lps) water treatment, two jetties, nine gas and chemical vessels, and 638 thousand m3 tank storage. As of June 30, 2025, TPIA was owned by PT Barito Pacific Tbk (34.63%), SCG Chemicals PCL (30.57%), PT Top Investment Indonesia (15.00%), Prajogo Pangestu (5.03%), Marigold Resources Pte Ltd (3.92%), Erwin Ciputra (0.16%), and the public (10.69%). (ends)