PEFINDO affirms “idBBB+” rating for WSKT’s maturing bond of IDR1.15 trillion

(August 19, 2020)--PEFINDO has affirmed its “idBBB+” rating for PT Waskita Karya (Persero) Tbk (WSKT)’s maturing shelf-registered Bonds I 2015 series B of IDR1.15 trillion, which will due on October 16, 2020. WSKT is expected to fully repay its maturing bond using internal cash which will come from construction project payments. In 2020, it expects to receive around IDR30-IDR35 trillion from payments for turnkey projects as well as other construction projects. As of March 31, 2020, WSKT had a cash balance of IDR6.1 trillion against IDR4.1 trillion of maturing debts. In addition, it had about IDR7.9 trillion of unused credit facilities, nearly half of which was coming from state-owned banks.

Debt security rated idBBB denotes adequate protection parameters relative to other Indonesian debt securities. However, adverse economic conditions or changing circumstances are more likely to weaken the issuer’s capacity to meet its long-term financial commitments on the debt security. The plus (+) sign indicates that the rating is relatively strong within its category.

WSKT is one of the largest construction companies in the country. Its main business, providing construction works, contributed 91% of revenue in 2019. Its other businesses include precast concrete, toll roads, property, and energy. It has an extensive domestic marketing network with 33 marketing offices throughout the country. The Indonesian government held a 66% stake in WSKT as of March 31, 2020, with the remainder publicly owned. (ends)