Surabaya, indomaritim.id – Standard and Poor’s (S&P) had raised Pelindo III rating from BB+ to BBB-. In addition, the BBB- rating with a stable outlook reflected that Pelindo III position was currently in investment grade category and showed that it was one of the main port companies in Indonesia. Then the company’s ability was also considered capable of maintaining a stable margin and strong cash flow protection.
“The rating reflects the government’s support for Pelindo III because of the strategic importance of the port,” said Pelindo III President Director, Doso Agung.
Doso Agung saw that the raise in rating was also supported by Indonesia’s economic condition which was consistently better than peers country with the same income level.
“The raise in the S&P rating reflects the prospect of a strong Indonesian economic growth that is expected to support business expansion and the port industry. Pelindo III is increasingly confident because it is seen as having the ability to fulfill financial commitments in the long term,” he said.
Pelindo III Finance Director, Iman Rachman, added that the rating was based on data and information obtained by S&P from Pelindo III and the 2018 financial report and projections in 2019.
“The underlying thing about Pelindo III rating raise is the potential government support for the port development program. Considering Pelindo III is one of the main port managers in Indonesia which has helped maintain the nation’s economic stability. Moreover, 100 percent of Pelindo III shares are owned by the government,” he said.
Meanwhile, the Stable Outlook rating was given on the basis of the company’s ability to maintain the stability of the business carried out and manage operational cash in a healthy manner.
“The rating will be maintained and can be increased if Pelindo III is able to actualize all expectations for investments made in strategic projects, such as in Teluk Lamong Terminal or in Surabaya Container Terminal. Not only that, Pelindo III is also expected to be able to increase financial ratios gradually,” he explained.
Pelindo III Corporate Secretary, Faruq Hidayat, revealed that healthy operational cash management in Pelindo III was also accompanied by opportunities for container flow growth to reach 8 percent and ship visit growth to 10 percent.
“The growth of container flows and the level of ship visits are always achieved every year in line with the increase in facilities and services provided,” he concluded.