PEFINDO has affirmed its idAAA ratings to PT Pelabuhan Indonesia

(October 12, 2023)--PEFINDO has affirmed its idAAA ratings to PT Pelabuhan Indonesia (Persero) or Pelindo as well as the Bond I/2016 and Bond I/2018 previously issued by Pelindo I and Pelindo IV, respectively. The outlook for the corporate rating is stable.

The rating reflects our view of the government’s strong likelihood of support for Pelindo, its superior market position, and stable recurring income from fixed rental payments. However, these strengths are partly offset by its moderate cash flow protection measures and liquidity.

The rating may be lowered if we view there is weakening government support, such as through material divestment of ownership. The rating may also be under pressure if Pelindo incurs substantially larger debt than projected because of higher capital spending or cost overruns from its port expansions. We may also lower the rating if there are material decreases in the volume of container and cargo throughputs, resulting in a weaker financial profile on a prolonged basis.

Pelindo was established following the merger among state-owned port operators, namely Pelindo I-IV, effective from October 1, 2021. Following the merger, the port operations are manage based on the line of business cluster from which it has established four sub holdings: containers, non-containers, logistics and hinterland development, as well as marine, equipment, and port services (MEPS). Pelindo is wholly owned by the government of Indonesia. (ends)