JAKARTA -- PT Pemeringkat Efek Indonesia (Pefindo) has assigned an idA+ rating to PT Timah Tbk (TINS). The rating reflects TINS’s very strong market position, relatively strong financial profile, and a high likelihood of support from its parent company.
In its official report, Pefindo stated that TINS’s fundamentals remain resilient, particularly in terms of market presence and capital structure. However, the rating is constrained by several external factors that continue to weigh on the company’s performance, such as illegal tin mining, as well as volatility in tin prices and adverse weather conditions.
Pefindo noted that TINS’s rating could be upgraded if the company is able to demonstrate sustained improvements in operational performance, including higher productivity, cost efficiency, and the ability to generate strong EBITDA.
In addition, a potential upgrade could be supported by stronger governance of the tin industry, which would help create a more stable operating environment.
Conversely, the rating could be downgraded if TINS records debt levels significantly higher than projected without being offset by improvements in business performance. A downgrade could also occur if fluctuations in global tin prices significantly weaken the company’s revenue and profitability.
Rendi Kurniawan, Corporate Secretary of PT Timah Tbk, said that management appreciates the rating and views it as encouragement for the company to continue improving performance and governance across all business lines.
“PT Timah Tbk continues to strengthen its business fundamentals through increased productivity, operational efficiency, enhanced operational performance, and by maintaining a healthy financial profile,” he said.
Regarding external risks, PT Timah Tbk emphasized that the company continues to enhance oversight and coordination with stakeholders to address industry challenges, including efforts to tackle illegal mining, which involves multiple parties.
“We continue to collaborate with the government, law enforcement agencies, and other stakeholders to create better and more sustainable governance in the tin industry. This is an important part of maintaining operational stability and stakeholder trust,” he added.
“PT Timah Tbk is committed to creating efficient, responsible, and sustainable operations and to delivering added value for shareholders and the broader community. The company continues to implement strategic measures to achieve sustainable growth amid global challenges,” he concluded. (*)
