PEFINDO has assigned its idBBB+ rating with a stable outlook to PT Soechi Lines Tbk

(June 26, 2026)--PEFINDO has assigned its idBBB+ rating with a stable outlook to PT Soechi Lines Tbk (SOCI) and idAAA(sy)(sf) for the proposed Sukuk I Year 2026 of a maximum IDR3 trillion. The proceeds of Sukuk issuance will be used to refinance part of SOCI’s existing bank loans and for capital expenditure (capex). The Sukuk is enhanced by a subordination credit facility from PT Sarana Multi Infrastruktur (Persero) (SMI, idAAA/Stable).

SOCI’s corporate rating reflects its strong market position in the tanker shipping segment, integrated shipping business operation, and strong financial flexibility, but is constrained by its limited ability to expand margins and high leverage. Sukuk rating is supported by credit enhancement from SMI.

Sukuk holders are exposed to a risk of loss in which they may not get timely or full repayment on the Sukuk principal and/or coupon if SOCI’s performance deteriorates significantly, adversely affecting incoming cash flows to be utilized to service the financial obligations. PEFINDO views that the risk is mitigated by the proposed transaction structures protected by a subordinated credit facility of a maximum of IDR3 trillion from SMI as the credit enhancement and Sukuk sinking funds for the coupon and principal. Under our stress scenario, we project SOCI will incur additional debt in 2032-2033 to refinance its proposed Sukuk maturities of around IDR1 trillion per year. We anticipate that SOCI will utilize part of SMI’s subordinated facility during that period to mitigate the refinancing risk under the proposed transaction structures.

We also view this transaction as based on an adequate cash flow protection profile, bolstered by the remaining ample subordinated credit facility from SMI if it is utilized. SOCI’s commitment to providing a one-time Sukuk coupon sinking fund and fully reserving its Sukuk principal payments three months prior to the due date will augment the cushion for debt service payments.

The corporate rating may be raised if SOCI further strengthens its market position in the shipping industry as reflected by continuous growth in revenues and expanded margins while maintaining a lower leverage. However, we may lower the corporate rating if the Company’s business profile deteriorates due to the inability to renew expiring contracts or suffers from significantly lower charter rate during contract renewal, resulting in a drop in its revenue and margins, weakening its financial profile.

The corporate rating could also be under pressure if SOCI incurs higher debt than expected without being compensated by stronger earnings visibility.

The instrument rating may be lowered if the credit enhancer’s corporate rating is downgraded or if SOCI utilizes the non-revolving credit enhancement facility more- than-expected, such that the remaining facility is deemed incommensurate with the level of protection for the assigned rating.

SOCI is a holding company that was established in 2010, whereas the group has commenced shipping business in Indonesia since 1981, offering transportation services for oil, gas, and chemicals. The Company also offers ship maintenance, repair, and overhauling vessels service, shipbuilding, and dry-docking services. As of March 31, 2026, its shareholders were PT Darma Pertiwi Raya (35.05%, ultimately owned by Mr. Go Darmadi – President Commissioner and founder of the Group), PT Pilar Sukses Utama (35.05%, ultimately owned by Mr. Paulus Utomo – Affiliated Individual), and the public (29.9%, each less than 5%). (ends)