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March 20, 2008 |
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CILIANDRA PERKASA: S&P Affirms B Long-Term Corp. Credit Rating Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Indonesia-based palm oil producer, PT Ciliandra Perkasa with a stable outlook, and the 'B' foreign currency rating on the US$160 million senior secured notes issued by Ciliandra's wholly owned subsidiary, Ciliandra Perkasa Finance Co. Pte. Ltd. At the same time, Standard & Poor's removed the ratings from CreditWatch with negative implications, where they were placed on March 10, 2008, after the Corruption Eradication Commission of Indonesia announced its intention to auction several properties. The properties included plantation assets owned by Ciliandra and its subsidiaries, in relation to a court case involving Martias, one of the company's founders and former shareholder. According to media reports, the KPK has since withdrawn its intention to auction the properties. Standard & Poor's understands from Ciliandra that there will no longer be any potential impact on the company's assets and cash flows and Ciliandra will no longer need to pursue any legal action against KPK. "Furthermore, the company also announced that it has not extended any financial assistance to Martias or any party related to the payment of the penalty imposed on Martias," said Standard & Poor's credit analyst Joey Chew. "The rating affirmation also factors in the company's confirmation that it continues to hold the relevant land title certificates and full operational access to these properties." PT Ciliandra Perkasa PT Ciliandra Perkasa -- http://www.ciliandraperkasa.co.id/ -- is a private Indonesian upstream palm oil plantation companyoperating in Sumatra. It has 13 oil palm plantations totalling 76,830 planted hectares, and 6 palm oil crushing mills with a total capacity of 2.07 million tonnes of fresh fruit brunches. |
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