PEFINDO affirms “idBBB” rating for WSKT’s maturing bond of IDR1.2 trillion

(January 27, 2021)--PEFINDO has affirmed its “idBBB” rating for PT Waskita Karya (Persero) Tbk (WSKT)’s maturing shelf-registered Bonds III 2018 series A of IDR1.2 trillion, which will due on February 23, 2021. WSKT is expected to fully repay its maturing bond using a mix of internal cash which will come from construction project payments as well as proceeds from its corporate action plan.

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.

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 September 30, 2020, with the remainder publicly owned. (ends)