Moody's announces completion of a periodic review of ratings of Chandra Asri Petrochemical Tbk (P.T.)

(Singapore, March 12, 2019) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Chandra Asri Petrochemical Tbk (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

Chandra Asri Petrochemical Tbk (P.T.)'s (CAP) Ba3 corporate family rating reflects its position as the largest petrochemical producer in Indonesia (Baa2 stable), strong credit metrics, including debt/EBITDA of 1.3x as of 30 September 2018, and excellent liquidity profile.

The rating also reflects the expected volatile margins and earnings, due to its focus on commodity petrochemical products, meaningful asset concentration and its large capital spending plans over the next five years, some of which will be debt funded.

CAP is strongly positioned at the Ba3 rating level which provides the company with continued financial flexibility during cyclical downturns and the abiltiy to manage its expansion at current rating levels. Moody's expects that CAP will continue to manage its balance sheet and liquidity in a prudent manner, despite the company's growth initiatives.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period. (ends)