June 24, 2008

Fitch Ratings has affirmed the issue rating of B+ rating to Indonesian shrimp producer PT Central Proteinaprima, reflecting satisfactory progress of its ongoing revitalisation of assets acquired from Dipasena in July 2007.

The outlook on the rating is stable as Fitch expects CPP earnings to cut financial leverage to a level more commensurate to its ratings.

CPP ratings are held back by risks associated with shrimp farming, such as the threat of diseases, weather-dependent yields and the potential use of trade barriers by major importers.

Fitch also said CPP's heavy reliance on its largest market, the US, may expose it to potential demand slowdown should the US experience a sustained economic recession.

The US accounts for about half of CPP's frozen shrimp export revenue.

However, Fitch has noted that CPP is expanding into other markets to cushion the impact of that risk.

Central Proteinaprima is a vertically integrated shrimp producer and processor, as well as Indonesia's market leader in shrimp fry, shrimp feed and fish feed production. Their products include frozen shrimp, shrimp feed, shrimp fry, and probiotics.

Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions.