PEFINDO has affirmed its idAA ratings AKRA and its Shelf Registered Bond I

(March 14, 2024)--Outlook for the corporate rating is stable. The rating reflects PT AKR Corporindo Tbk (AKRA) extensive logistics infrastructure network, solid financial profile, and strong demand for fuel and basic chemical. However, the rating is constrained by its exposure to commodity price.

The rating may be raised if AKRA substantially strengthens its business profile by increasing its recurring income and expanding the market share in its core businesses, trading and distribution segment while maintaining a conservative capital structure and strong cash flow protection measures. We may lower the rating if the Company’s revenue or EBITDA fall significantly short of the targets or if it incurs more debt than projected without being compensated by higher EBITDA, which will aggravate its financial profile.

AKRA is engaged in the trading and distribution of fuel and basic chemicals in Indonesia. Through its subsidiaries, it is also involved in logistics, manufacturing, integrated industrial estates, and ports. As of September 30, 2023, its shareholders consisted of PT Arthakencana Rayatama (59.74%), management (1.62%), the public (36.96%, each below 5% ownership), and treasury stocks (1.68%). (ends)