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Tuesday, June 8, 2010

Arpeni starts paying dollar bonds coupon: Pefindo downgraded bond rating of Berlian Laju Tanker

Monday, 07/06/2010 00:00 WIB

Arpeni starts paying dollar bonds coupon: Pefindo downgraded bond rating of Berlian Laju Tanker


Irvin Avriano A.
Bisnis Indonesia

JAKARTA: PT Arpeni Ocean Line Tbk, one of a listed shipping companies that build by Hadi Surya, paid-off their global bond denomination coupon with issuance worth US$6.21 million maturing in last Thursday.

The coupon payment is to prevent from the possible bond rating downgrade given by the rating company, PT Fitch Ratings Indonesia.

"We have paid from our internal cash," said President Director of Arpeni Oentoro Surya by short message to Bisnis yesterday.

The fund is paid timely prior to the grace period or May 3 in 30 days. The grace period is the extended period given to the emitter to pay the debt to corporate bond investors.

Previously, the bond rating would be downgraded into the level of negative credit watch by Pefindo and Fitch Ratings Indonesia.

Research of Fitch Ratings early May mentioned the bond rating might be downgraded to RD level if the company fails to pay the global bond coupon in 30 days.

The company still has grace period since the due date of coupon payment on May 3.

"Arpeni internal cash growth shows inconvenience due to the corporate capacity to pay the coupon in the extended period," said Director of Corporate Ratings Fitch team Buddhika Piyasena on the research.

Formerly, the company could pay the bond coupon December 2009. But the rating was not downgraded as it could pay in the grace period.

Arpeni had worsening finance due to the high account receivable, crystallization of the derivative contract cost, weakened operational revenue, and corporate reserves cash placement worth US$25 million as the collateral to bank and the relevant party on the debts.

The company only has US$412 million cash reserves last year showing the emitter finance performance failed to show significant progress since end of year.

PT Pemeringkat Efek Indonesia (Pefindo) also set idSD level or selective default for the company and idCCC for corporate bond and sukuk.

The rating still considers the ability of the company to pay the bond and MTN sharia coupon maturing this month.

Oentoro also said the company has prepared internal cash to pay bond coupon maturing on June 17. "That is right the fund is from internal cash."

On the separate bond progress, Pefindo also cut down bond and sukuk rating of PT Berlian Laju Tanker Tbk worth totally IDR1.4 trillion on level of idA- from level idA.

The downgraded rating was driven by the weakening finance performance, high need of funds for the installment of ship purchase, high exposure to the volatile freight rate risk, and ship leasing drop.

But the shipping company booked swelling net profit by 134.77 percent in quarter I/2010 thanks to the soaring revaluation of assets and derivative transaction profits.

In quarter I/2010, the company booked US$25.31 million net profits as from the US$72.81 million net losses.

President Director of Berlian Tan-ker Widihardja Tahudjaja said the soaring net profit happened along with the mounting business revenue by 1.62 percent into US$161.55 million as from US$158.97 million.

However, the profit is much more derived from outside core business. The business profit dropped by 42.38 percent from US$42.14 million in March 2009 into US$24.28 million following the direct cost rise by 19.68 percent from US$109.45 million into US$130.99 million.

At the same time, the company recorded almost doubled derivative transaction profits into US$37.12 million as from US$19.09 million.

Pefindo also cut down the rating outlook of PT Perkebunan Nusantara VII from stable to negative levels due to the mounting financial leverage trend and the falling cash flow protection.

Emitter of I/2004 bonds worth IDR10 billion and the medium term notes (MTN) I/2009 worth IDR300 bio plans to issue MTN II/2010 worth IDR500 billion. (Bisnis/iaa/faa)

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