Fitch: APAC CPO Plantation Companies Face Potential Demand Slowdown

Reuters

(The following statement was released by the rating agency)Link to Fitch Ratings' Report: Crude Palm Oil Dashboard H213www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717736">http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717736SINGAPORE/SYDNEY, September 10 (Fitch) Fitch Ratings says crudepalm oil (CPO) plantation companies in Asia face potentially slower demand fromthe two largest import markets, China an India, with performance over the next12 to 18 months subject to the intensity and duration of the decline. In a new report published today CPO plantation companies inMalaysia and Indonesia have during H113 managed to liquidate their inventoryand improve export volumes. Prices remained low despite improving to betweenUSD840 and USD860 per tonne in H113 from a trough of USD776 in December2012. Low prices have also served to depress CPO export realisation (CPO exportsin USD /CPO exports in tonnes) in Malaysia at USD743/tonne in H113, downfrom USD993/tonne in H112.Despite some deterioration in average selling price andoperating profit per tonne, CPO plantation companies' funds from operations(FFO)-adjusted net leverage remains compatible with their rating levels.The 'Crude Palm Oil' dashboard is available atwww.fitchratings.com.">www.fitchratings.com.Contact:Nandini Vijayaraghavan, CFADirector+65 67967216Fitch Ratings Singapore Pte Ltd6 Temasek Boulevard#35-05 Suntec Tower FourSingapore 038986Erlin SalimAssociate Director+62 21 29026410Vicky MelbourneSenior Director+61 2 8256 0325Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,Email: leslie.tan@fitchratings.com.Additional information is available on www.fitchratings.comALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS ANDDISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THISLINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION,RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLEON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'SCODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATEFIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLEFROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHERPERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN ANEU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUERON THE FITCH WEBSITE.

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