(May 16, 2025)--PEFINDO has affirmed its idAA- ratings for PT Chandra Asri Pacific Tbk (TPIA) and its outstanding bonds. Outlook for the corporate rating is stable. The rating reflects our view of TPIA’s leading position in the petrochemical industry, which is supported by synergies with its strategic partners, vertically integrated operations with satisfactory supporting facilities, as well as strong liquidity and financial flexibility. The rating is constrained by the Company’s moderate capital structure and financial policy, sensitivity to industry cyclicality, as well as risks related to the expansion of new projects.
Our rating affirmation has incorporated the acquisition of Aster Chemicals and Energy Pte Ltd, an oil refinery and petrochemical company based in Singapore, on April 1, 2025. PEFINDO views that the acquisition may strengthen TPIA’s vertical integration and product diversification, although somewhat offset by the unfavorable condition of the petrochemical industry reflected in the Company’s financial profile.
We may raise the rating if TPIA strengthens its operating management, as reflected by its ability to generate EBITDA more than projected and positively improve its financial profile. The rating may be lowered if we view that there is a persistent deterioration in its financial profile due to weaker-than-expected profit margins because of rising feedstock prices or declining product prices. This may result from a weaker-than-anticipated demand for petrochemical products, especially in the domestic market where the Company focuses on or higher than expected feedstock price. The rating may also be under pressure if TPIA undertakes higher than projected debt-funded expansion, resulting in a more aggressive financial profile.
TPIA is an integrated oil refinery and petrochemical company as well as engaged in the infrastructure business in Indonesia and Singapore. The Company produces gas oil, kerosine, gasoline, naphtha, olefins, polyolefin, styrene monomer, butadiene, methyl-tertiary-butyl-ether (MTBE), and butene-1. The Company owns an oil refinery, ethylene cracker, naphtha cracker, and two petrochemical complexes in Indonesia and Singapore. TPIA is also the sole distributor of electricity within 2,666 hectares in Cilegon and owns 120 megawatts (MW) combined cycle power plant, 4,045 liters per second (lps) water treatment, five jetties, and 125 tanks. As of March 31, 2025, it was owned by PT Barito Pacific Tbk (34.63%), SCG Chemicals Co Ltd (30.57%), PT Top Investment Indonesia (15.00%), Prajogo Pangestu (5.03%), Marigold Resources Pte Ltd (3.92%), Erwin Ciputra (0.16%), and the public (10.69%). (ends)
