FW: Bumitama Agri Ltd: Raised to Positive_20170908

 

Bumitama: Raised to positive

 

·         We turn constructive on BAL raising our credit outlook to positive from stable.

·         BAL’s debt coverage metrics have met RAM’s rating upside triggers for 3 consecutive quarters and we think are sustainable.

·         We expect 8-12bps spread tightening potential for BAL’2019 bonds, which last traded 10bps wide from the AA3 curve. RAM’s next annual review is expected in 1Q2018, as early as January.