PEFINDO affirms “idA-” rating for ADHI’s maturing bonds totaling IDR3,553 billion

(March 23, 2022)--PEFINDO has affirmed its “idA-” ratings for PT Adhi Karya (Persero) Tbk (ADHI)’s maturing shelf-registered Bonds II 2017 of IDR2,997 billion and shelf-registered Bonds II 2019 Series A of IDR556 billion, which will be due on June 22, 2022, and June 25, 2022, respectively.

ADHI is expected to fully repay its maturing bonds using a mix of internal cash which will come from construction project payments as well as external funds. At end-February 2022, ADHI has around IDR2.6 trillion of undisbursed credit facilities and around IDR4 trillion available under its existing shelf-registered bond III program.

An obligor rated idA has a strong capacity to meet its long-term financial commitments relative to those of other Indonesian obligors.

However, the obligor is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than higher-rated obligors. The minus (-) sign indicates that the rating is relatively weak within the respective rating category.

ADHI, established in 1960, is a state-owned contractor company primarily engaged in providing construction services. Its business is classified into four main segments: engineering & construction; property and hospitality; manufacturing; and investment & concession.

As of December 31, 2021, its shareholders were consisted of the Indonesian government (51.0%) and the public (49.0%). (ends)