PEFINDO affirms “idA+” ratings for PT Jakarta Lingkar Baratsatu and its bond
Tuesday, June 8 2021 - 02:30 PM WIB
(June 7, 2021)--PEFINDO has affirmed its “idA+” ratings for PT Jakarta Lingkar Baratsatu (JLBS) and its Bond I Year 2018 Series B. At the same time, we affirmed the “idA+” rating for its maturing Bond I Year 2019 Series A amounting to IDR875 billion, which will due on September 20, 2021. JLBS is expected to fully repay its maturing bond using internal cash. As of March 31, 2021, it had a cash balance of IDR899.1 billion, including IDR208.5 billion available as sinking fund, while we project JLBS to generate around IDR220 billion of net operating cash flows over the next 12-months. The outlook for the corporate rating is “stable”.
An obligor rated idA has a strong capacity to meet its long-term financial commitments relative to that 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 Plus (+) sign indicates that the rating is relatively strong within the respective rating category.
The rating reflects JLBS’ strong traffic demand, solid profitability indicators, and strong operating cash flow supported by low capital spending. The rating is constrained by its exposure to traffic volume risk and risk of excessive dividend distribution.
The rating could be raised if JLBS significantly exceeds revenue and/or EBITDA projections, while improving its financial leverage to a debt to EBITDA ratio of less than 2.0x on a sustained basis. The rating could be lowered if there is significant reduction in toll revenues due to traffic volume and/or if it incurs additional debt, making its financial leverage substantially higher than we anticipated. JLBS was established in 1995 and started operating the 9.9-kilometer Jakarta Outer Ring Road (JORR)-W1 (Kebon Jeruk-Penjaringan) toll road in February 2010. The concession period will expire on February 2, 2042. Following the JORR integration in September 2018, JLBS’ revenue is derived from a revenue sharing scheme with other JORR operators from which it accounts for 15.32% of the overall JORR revenue. As of March 31, 2021, its shareholders were PT Bangun Tjipta Sarana (64.8%), PT Marga Utama Nusantara (35.0%), and PT Reka Daya Adicipta (0.2%). (ends)