Pefindo Lowered Another Indonesia Stated Owned Construction Company
After downgrading Waskita Karya (Persero) Tbk (WSKT:IJ) rating to ‘idA-‘, Pemeringkat Efek Indonesia (Pefindo) now has downgraded another state owned construction company. Rating of Adhi Karya (Persero) Tbk (ADHI:IJ) and its outstanding shelf registered bond as well as shelf registered sukuk mudharabah was downgraded to ‘idA-‘ from ‘idA’ by Pefindo. Though the outlook for Adhi Karya’s rating was revised to stable from negative. The downgrade was driven by Adhi Karya’s weakening capital structure and cash flow protection as a result of the sustained pressure on its profitability margin due to challenging conditions in its EPC business. Those condition has caused on its annualized debt to EBITDA ratio exceeding 3.5x and its annualized FFO to debt ratio consistently below 15% in the last six quarters.
