PEFINDO affirms “idA-” rating for PT Adhi Karya (Persero) Tbk’s maturing Shelf-Registered Bond I Year 2013 Serie B

(January 14, 2020)--PEFINDO has affirmed its “idA-” rating for PT Adhi Karya (Persero) Tbk (ADHI) Shelf-Registered Bond I/2013 Serie B of IDR500 billion that will mature on March 15, 2020. The Company plans to repay its maturing bond using internal cash and time deposit. As of September 30, 2019, ADHI had cash and cash equivalent of around IDR1.5 trillion.

Debt security rated idA indicates that the obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is strong, however, the debt security is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated debt. The Minus (-) sign indicates that the rating is relatively weak within the respective rating category.

ADHI is one of the largest construction companies in Indonesia. Its business is divided into five major categories: construction services, energy, property, industry, and investment. At the end of September 2019, its shareholders were the Indonesian government (51.0%) and the public (49.0%). (ends)