PEFINDO has assigned an idAAA rating with a stable outlook to PT Pupuk Indonesia (Persero) (PIHC). PEFINDO has also given an idAAA rating to PIHC’s Sustainable Bond II. The Company’s rating is primarily influenced by the very strong likelihood of support from the government. PIHC’s standalone credit profile is supported by its very strong position in the fertilizer industry and its integrated business operations but is constrained by a moderate capital structure, project execution risks, and exposure to commodity price volatility.

The rating could be downgraded if PEFINDO perceives a material reduction in government support, such as changes to the subsidy scheme or regulatory framework that negatively impact the Company. The rating could also be lowered if there are unfavorable changes in global fertilizer and ammonia prices that affect the Company’s revenue and cash flow, or if the Company aggressively finances expansion with higher-than-projected debt without corresponding improvements in business performance. PIHC is the largest fertilizer company in Indonesia.

PIHC owns five subsidiaries that produce fertilizer, with facilities located in East Kalimantan (PT Pupuk Kalimantan Timur in Bontang), Sumatra (PT Pupuk Iskandar Muda in Aceh and PT Pupuk Sriwidjaja Palembang in Palembang), and Java (PT Pupuk Kujang in Cikampek and PT Petrokimia Gresik in Gresik). Additionally, it has five other subsidiaries engaged in EPC, trading, logistics, energy, and food businesses. As of September 30, 2024, PIHC is fully owned by the Government of Indonesia.

To download the summary Credit Rating of PT Pupuk Indonesia (Persero), please click the following link
https://shorturl.at/IxusG

Or check the following link https://www.pefindo.com/rating-action-reports/rating-report/PIHC