PEFINDO: PT Sumberdaya Sewatama rated at “idCCC” with “negative” outlook
Friday, September 10 2021 - 04:39 AM WIB
(September 9, 2021)--PEFINDO has affirmed its “idCCC” ratings to PT Sumberdaya Sewatama (SSMM) and its Bond I Serie B Year 2012, and its “idCCC(sy)” rating to the Company’s Sukuk Ijarah I Year 2012. PEFINDO maintain a “negative” outlook for its corporate rating to anticipate SSMM’s continued challenges to manage its liquidity given the weak potential demand for temporary power rental business. PEFINDO views that SSMM will still need liquidity support from its shareholders to settle its financial obligations, including its restructured debts on May 15, 2020 with the maturity date extended to December 31, 2034. We will regularly evaluate the consistent business improvements post restructuring and its effect to SSMM’s liquidity profile.
An obligor rated idCCC is currently vulnerable, and dependent upon favorable business and financial conditions to meet its financial commitments.
The suffix (sy) indicates Islamic principles compliant.
The corporate rating reflects SSMM’s very weak financial profile and liquidity, its high dependence on a single buyer, and the uncertain growth of the temporary power rental business. The rating is offset by potential room for higher electricity demand and its business synergy with its group.
We may lower the rating if SSMM fails to meet its financial obligations. The outlook may be revised to stable and/or we may take a positive rating action if the Company could demonstrate its ability to strengthen its business profile significantly and on a consistent basis indicated by a stable revenue generation which lead to improved financial ratios and SSMM’s capability to service its financial obligations from its operating cash flow.
SSMM’s business is classified into temporary power rental, operations and maintenance, and energy efficiency services. It terminated its independent power producer (IPP) business in 2017. At the end of June 2021, PT ABM Investama Tbk held a 0.97% Series A stake in SSMM, PT Godra Investama Mandiri owned a 97.09% Series B stake and PT Tiara Marga Trakindo owned a 1.94% Series B stake. (ends)