JAKARTA. Moody's Investors Service (Moody's) has increased the rating of PT Pelabuhan Indonesia (Persero) or Pelindo along with its obligations, following the revenue growth and strategic initiatives of the company.

 

Pelindo and its unsecured bonds have been promoted to Baa2 from the initial Baa3. Pelindo’s outlook is also raised to “stable” from the previously “positive.”

In the meantime, Moody’s also moves up the Baseline Credit Assessment (BCA) of Pelindo to Baa3. It was initially stuck at Ba1.

Erman Zhang, Moody’s Analyst, said that the promotion of rating and outlook of Pelindo and its obligations reflects Moody’s expectation that Pelindo will continue to synergise to increase its revenue and enhance cost efficiency after its merger in late 2021. “We expect its net profit margin to remain stable or grow moderately from 2023 to 2025,” he added.

In the official statement, Moody’s reaffirmed that this rating could reach even a higher level should the sovereign level of Indonesia increase. However, on the other hand, it might be demoted once Pelindo’s credit quality weakens, which could be detected from the funds-from-operation (FFO) to debts below 9% ratio. (KR/ZH)