Pefindo affirms AKRA‘s ‘AA-‘ ratings for PT AKR Corporindo and its Bond

Credit rating agency Pefindo has affirmed PT AKR Corporindo Tbk (“AKRA”) rating at ‘AA-‘ with a stable outlook.

The ratings reflect the following:

• Steady demand of fuel in Indonesia
• Extensive logistic infrastructure network
• Strong cash flow protection.

The ratings are constrained by the risk related to further development in the industrial estate and exposure to risk of downturn in the mining sector which constitutes one of the company’s main customer segments for its fuel distribution business.

AKRA’s main business line is in the trading and distribution of fuel and basic chemicals in Indonesia and through its subsidiaries the company is also engaged in logistic, manufacturing, coal mining, integrated industrial estate and port businesses. In addition to its business in Indonesia, AKRA has a manufacturing company and container and bulk commodity river ports in Southern China. As of June 30, 2015, its shareholders consist of PT Arthakencana Rayatama (58.9%), management (0.4%) and the public (each below 5% ownership, 40.7%).