Pefindo withdraw Matahari Putra's bond negative creditwatch

BI/exchange

06/02/2010

Irvin Avriano A.

Bisnis Indonesia

Pefindo withdraw Matahari Putra's bond negative creditwatch

JAKARTA: PT Pemeringkat Efek Indonesia (Pefindo) withdraw outlook for status of the negative creditwatch for PT Matahari Putra Prima Tbk's bonds and sukuk. The bond rating outlook was also placed on a stable level.

The negative creditwatch outlook was pinned by Pefindo in February, related with the completeness of the Matahari Putra divestment on its subsidiary, PT Matahari Department Store Tbk.

Rating of Matahari Putra's bonds III/2009 and sukuk II/2009 totaling IDR528 billion, which is confirmed back on level idA+ and idA+(sy).

Pefindo VP Corporate Rating Vonny Widjaja said today in her research that the ratings reflects the company's strong market position in the food retail industry, the well spread shops, and superior liquidity position.

"However, the rating is constrained by a thin margin of the retail food business and the intense competition in the industry," Vonny said in his research today.

The ranking was done after the release of the action as much as 90.76% shares of a subsidiary business Matahari Putra, Matahari Department Store, to PT Meadow Indonesia worth Rp7, 12 trillion and the payment of all corporate bank debt.

Of the cash acquisition funds IDR5.3 trillion, the company allocates as much as IDR3.4 trillion for debt reduction, as much as IDR900 billion for capital expenditure and working capital, and IDR1 trillion for the dividend to investors.

Matahari Putra currently operates 88 Matahari Department Store, 47 Hypermart, 26 Foodmart, 53 Boston HBC Center, 16 Times Book Store, and 112 TimeZone.

Company's stock prices that coded MPPA was strengthened by 0.98% to a level IDR1,030 this afternoon and formed a market capitalization of the company to IDR5.72 trillion.