Fitch Affirms Samator Indo Gas at 'A(idn)'; Outlook Stable

By Fitch Ratings02 October 2023

Jakarta, 2 October 2024 -  Fitch Ratings Indonesia has affirmed PT Samator Indo Gas Tbk's National Long-Term Rating at 'A(idn)'. The Outlook is Stable. Fitch has also affirmed Samator Indo Gas's outstanding bond and sukuk programme, as well as the outstanding bond and sukuk, at 'A(idn)'.

The affirmation reflects Fitch's expectation that Samator Indo Gas's EBITDA net leverage will fall below 3.5x in 2024, after a temporary increase above 3.5x in 2023 (2022: 3.7x) on the Batang factory construction. This is supported by our expectations of rising airgas and non-airgas sales volume and a slight improvement in the company's main product prices. We expect strong revenue growth of high single-digit in 2023-2025 along with rising EBITDA margin to above 31% as economies of scale improves.

The rating also reflects the company's robust market position in Indonesia's industrial gas market and contractual nature on a large part of its revenue. However, it is constrained by its smaller operational scale than higher national peers due to relatively small market size of Indonesia's gas market.

'A' National Ratings denote expectations of a low level of default risk relative to other issuers or obligations in the same country or monetary union.

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