PEFINDO affirms the rating of PT Hutama Karya (Persero)’s maturing bond at “idA”

(April 30, 2020)--PEFINDO has affirmed its “_idA” rating for PT Hutama Karya (Persero) (PTHK)’s Bond I Year 2013 of IDR325.0 billion that will mature on June 28, 2020. The Company plans to use its unused credit facilities to pay the maturing bond. As of April 17, 2020, PTHK has unused cash loan facilities of IDR1.9 trillion from several banks.

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.

PTHK  is  a  state-owned  construction  company  specializing  in  roads  and  bridges.  It  also  has  business  interests  in  investment  and manufacturing. In September 2014, it was assigned through Presidential Regulation (Perpres) No. 100/2014, which was then amended by Perpres No. 117/2015, as the institution responsible for the fundraising, technical planning, construction, operation and maintenance of  24 Trans-Sumatra  toll  roads with  an  estimated  total  length of  2,704  kilometers  (km).  It  was  also  assigned  to operate  the  Jakarta Outer Ring Road Section S (JORR-S) toll road from Pondok Pinang to Kampung Rambutan in 2016. In August 2017, through Perpres No. 81/2017, it was assigned to operate the Tanjung Priok toll road access. PTHK has three subsidiaries: one in the property sector and another  two  entities  engaged  in  supplying  materials  (precast,  asphalt,  and  steel)and  construction to  support  the  Trans-Sumatra projects. As of December 31, 2019, it was wholly-owned by the Indonesian government. (ends)