Weekly Rating Action on Positive Note
Pemeringkat Efek Indonesia (Pefindo) has upgrade the outlook on Wika Realty Tbk (WKTY) to positive from stable whilst its rating remains at idBBB+. The outlook upgrade was driven by improved capital structure and better cash flow following capital injection of IDR1.7trn from its parent Wijaya Karya Tbk (WIKA:IJ, idA+/Sta) and potential land sales. The bulk shares of this additional capital will be used for debt repayment. The company’s rating though was still affirmed at idBBB+ to reflect its limited recurring income, lower margin as compared to peers and its business sector which is sensitive to macro changes. Elsewhere, the outlook on AKR Corporindo, Tbk (AKRA:IJ) also was revised to positive underpinned by better capital structure with no significant debt increase incurred by the company, better cash flow measures as a result of optimal cost management and potential sales of industrial land.
Fast Food’s AA Credit Rating from Pefindo
Jasa Marga Implements Open Transaction in Jagorawi Toll
WOM Finance on Rating Watch Negative
Bank Indonesia Open Transaction for Euro Hedging Swaps
Muted Reaction on Outlook Upgrade by Fitch
On global rating, Moody’s raised Profesional Telekomunikasi Indonesia (Protelindo) to Baa3 from Ba1 with stable outlook. It was underpinned by company’s commitment to a strong balance sheet in which the management will manage to achieve conservative leverage level with no significant contraction in cash flows. The company’s net leverage stood at 2.2x in June 2016 and the company guided to a net leverage tolerance level of 2.0x-3.0x, which is still in line the Baa3 rating. Furthermore, the company possesses strong liquidity as shown by its strong access to bank funding, long-dated debt maturity profile and strong cash which is reported at IDR3.6trn at June 2016.
