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Fitch: APAC CPO Plantation Companies Face Potential Demand Slowdown

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Crude Palm Oil Dashboard H213 www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717736">http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717736 SINGAPORE/SYDNEY, September 10 (Fitch) Fitch Ratings says crude palm oil (CPO) plantation companies in Asia face potentially slower demand from the two largest import markets, China an India, with performance over the next 12 to 18 months subject to the intensity and duration of the decline. In a new report published today CPO plantation companies in Malaysia and Indonesia have during H113 managed to liquidate their inventory and improve export volumes. Prices remained low despite improving to between USD840 and USD860 per tonne in H113 from a trough of USD776 in December 2012. Low prices have also served to depress CPO export realisation (CPO exports in USD /CPO exports in tonnes) in Malaysia at USD743/tonne in H113, down from USD993/tonne in H112. Despite some deterioration in average selling price and operating 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 at www.fitchratings.com.">www.fitchratings.com. Contact: Nandini Vijayaraghavan, CFA Director +65 67967216 Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Erlin Salim Associate Director +62 21 29026410 Vicky Melbourne Senior Director +61 2 8256 0325 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.