(July 8, 2025)--PEFINDO has assigned its idA rating to PT Daaz Bara Lestari Tbk’s (DAAZ) proposed Bond I Year 2025 of a maximum of IDR500 billion. The bond issuance proceeds will be used for capital expenditure and working capital requirements. At the same time, PEFINDO has affirmed its idA rating with stable outlook to DAAZ. The rating reflects DAAZ’s vertically integrated operation, conservative capital structure and strong cash flow protection, as well as strong demand for commodities. The rating is constrained by exposure to commodity price fluctuation and a lack of long-term contracts to ensure revenue visibility.
The rating may be raised if DAAZ significantly improves its revenue and EBITDA generation on a sustained basis, while also maintaining its stable profit margins and conservative financial leverage with expected net-debt to EBITDA and net-debt to equity ratios of a maximum of 1.4x and 0.4x, respectively. In addition, it must also be accompanied by sustainable improvement of cash flow protection with FFO to debt and EBITDA to IFCCI of at least 40% and more than 5.0x, respectively. The rating may be lowered if its cash flow generation substantially weakens as a result of lower-than-expected business performance or if the Company incurs higher-than-expected debt without being compensated for by a significant improvement in its business profile.
Established in 2009, DAAZ primarily operates in commodity trading, with a focus on coal, nickel, and fuel. In addition to its core trading activities, the Company has diversified into the shipping services sector, which also provides fleet support for DAAZ’s trading segment as part of its vertically integrated operations. As of December 31, 2024, its shareholders were PT Daaz Nusantara Abadi (42.49%), Zainal Abidinsyah Siregar (17.0%), Erwin Sutanto (12.75%), Irawan Sastrotanojo (12.75%), and the public (15.02%). (ends)
