Another Downgrade Week in Indonesia Bond Market

There were there corporate downgraded by Pemeringkat Efek Indonesia (Pefindo) last week. Buana Finance (BFIN:IJ) was downgraded to idBBB+/Stable from ‘idA-/Negative mainly driven by ongoing pressure on its financing lease business that resulted in weakening market position due to lower new booking since FY2014. The declining asset quality and lack of affiliation also weigh down the company’s rating. Express Transindo Utama (TAXI:IJ) also suffer downgrades where its rating lowered by one notch to A-/negative from A/Stable on the back of  lower than expected cash flow as a result of stiffer competition in the taxi industry. The competition rising from transportation based application has put pressure on TAXI’s business, thus the corporate outlook was also revised down to negative from stable.

Aneka Tambang Rating Downgraded to idBBB+ from idA-

Telkomsel’s Rating Affirmed Baa1; Bank Syariah Mandiri at idAA+

Weekly Rating Action on Positive Note

Fitch Affirms Indonesia Ratings at BBB-/Stable

Corporate Bonds Sales Shadowed by Rising Govvies Yield

Last week, the worst rating action was seen on Perkebunan Nusantara II (PPTD) whose rating lowered to CCC from BBB- with the status revised to CreditWatch with negative implication. The downgrade was triggered by the late payment of interest for its MTN due to tighter cash flow.  The company is also facing high refinancing risk for the upcoming maturing MTN due on November 2016. We saw only on upgrade this week coming from Saran Multi Infrastruktur (SMI) whose rating increased to idAAA/Stable due to the possibility of stronger support from government in time of needed as evidenced by the capital injection of IDR20.4trn received last year.

Gajah Tunggal Slashed to CCC+ on Growing Refinancing Risks

Another Downgrade for Trikomsel’s Rating

Bank Mandiri’s Strategy Improving its Credit Quality

Selling Action All Over the Board as Brexit Wins

Fitch Affirms Indonesia Ratings at BBB-/Stable