Changes in Outlook on SSMS Global Bonds

PT Sawit Sumbermas Sarana Tbk (SSMS) received the latest update on global bond issued at the beginning of 2018, amounting to USD 300 million marketed globally by SSMS subsidiaries.

Moody's as one of the rating agencies that routinely issued recommendations to investors gave quarterly opinion on SSMS global bond, based on the Company's performance in January 2019. Moody's did not change its rating on SSMS global bond, namely fixed B1, but on the other there was a change in outlook from positive becomes negative. The change in outlook that occurs is due to many factors outside the Company, such as low CPO prices until the end of 2018 and the absorption of CPO in the market. Chief Financial Officer (CFO) SSMS Nicholas J. Whittle said that overall the Company's production had increased in 2018 compared to 2017.

Based on data at the end year of the SSMS, FFB production performance increased by 28.6% as of December 31, 2018 compared to December 31, 2017, which is proportional to the increase in CPO to around 444,000 tons as of December 31, 2018. Good performance during 2018 and an increase in CPO prices in early 2019 gives the Company's optimism for the results in 2019.