TEXT-Fitch rate Aneka Gas bonds at 'A-(idn)'

(The following statement was released by the rating agency)

Oct 05 - Fitch Ratings has assigned a rating 'A-(idn)' for debt proposal PT Aneka Gas Industries (AGI), which consists of the £ 200 billion bail bonds and USD 300 billion sukuk ijara, both of which will mature in 2017.

The ratings are in line with the National Long-Term rating of AGI at 'A-(idn)' with a Stable Outlook. Rating Sukuk Ijarah reflects Fitch's opinion that the debt is classified as direct, unconditional, unsecured and constitute a general obligation of the AGI. The proposal follows the structure of the sukuk "Ijarah", and as to which the bond proposal has the same structure with the £ 160 billion of sukuk and bonds of £ 80 billion I issued in July 2008.

Funds from the issuance will be used mostly for the construction of two new air separation plants. Air separation plants are new and Bitung Rungkut will increase the annual production capacity of oxygen, nitrogen and argon for approximately 50.000 cubic meters. Remaining funds from the issuance will be used to pay the principal of the bonds that will mature in July 2013 and to fund working capital needs.

Rating of AGI reflects significant market share, increasing the scale and widespread distribution network. The Company has a 90% market share in the medical gas market and 20% market share in the industry, the gas market in Indonesia.

The low level of debt and gains improved AGI has also been taken into account in the ranking positively. Debt levels are assessed by net debt / EBITDA below 3x has maintained since 2009, while EBITDA margin increased to 26.7% in FY11 from 25% in FY09. Stable outlook based on Fitch's opinion that AGI will maintain strong credit metrics while running capacity.