PEFINDO affirms “idAA” ratings for PT Jasa Marga (Persero) Tbk and JSMR’s bond
Wednesday, January 22 2020 - 12:08 AM WIB
(January 21, 2020)--PEFINDO has affirmed its “idAA” ratings for PT Jasa Marga (Persero) Tbk (JSMR) and JSMR’s Bond XIV Series JM-10 Year 2010. The outlook for the corporate rating is “stable”.
An obligor rated idAA differs from the highest rated obligors only to a small degree, and has a very strong capacity to meet its longterm financial commitments relative to that of other Indonesian obligors.
The corporate rating reflects strong government support for completing toll road projects, JSMR’s dominant position in the toll road sector, steady toll revenue growth driven by tariff adjustments with strong profitability, and strong financial flexibility. The rating is constrained by its aggressive capital structure in the near to medium term and business risks related to the development of new toll roads.
The rating will be raised if JSMR’s new toll roads are successfully operated as scheduled and consistently attract high traffic volume as projected, while improving its capital structure. The rating will be lowered if its aggressive capital structure is not compensated by improving business performance, which could weaken its cash flow protection measures.
JSMR is the largest toll road operator in Indonesia. Its portfolio includes 13 old toll road concessions (Jagorawi, Jakarta-Tangerang, Ulujami-Pondok Aren, JIRR, Prof. Dr. Sedyatmo, Jakarta-Cikampek, JORR, Cikampek-Padalarang, Padaleunyi, Palikanci, Semarang, Surabaya-Gempol, and Belmera), 11 fully operated toll roads at subsidiaries (Nusa Dua-Ngurah Rai-Benoa, JORR W2N, SurabayaMojokerto, Solo-Ngawi, Semarang-Solo, Gempol-Pasuruan, Batang-Semarang, Medan-Kualanamu-Tebing Tinggi, Gempol-Pandaan, Kunciran-Serpong, and Jakarta-Cikampek II Elevated), and 4 half operated toll roads (Bogor Ring Road, Ngawi-Kertosono-Kediri, Balikpapan-Samarinda, and Pandaan-Malang). It is also in the process of land acquisition and construction on 5 toll road projects at subsidiaries (Cengkareng-Kunciran, Serpong-Cinere, Jakarta-Cikampek II South, Manado-Bitung, and Probolinggo-Banyuwangi). As of September 30, 2019, its shareholders consisted of the Indonesian government (70.0%), management and employees (0.1%), and the public (29.9%). (ends)