PEFINDO has affirmed its “idAAA(sf)” rating for PT Marga Lingkar Jakarta

(August 11, 2023)--PEFINDO has affirmed its “idAAA(sf)” rating for PT Marga Lingkar Jakarta (MLJK)’s Bond I Year 2017. The rating reflects the strong transaction structure of the project bond, the project’s good economy of service area, and good operating management. The rating is constrained by exposure to toll road traffic volume volatility.

The rating may be lowered if MLJK’s debt service coverage ratio – as calculated by EBITDA and beginning cash, including restricted cash, divided by interest payments and bond repayments during the year – is less than 2x every year-end on a sustained basis. This may be triggered by a significant drop in EBITDA due to a combination of factors, including a decrease in JORR’s traffic volume or slower-than-expected traffic volume recovery, lower rate or delay in toll fee adjustment, or higher operating costs than estimated. We may also lower the rating if it fails to meet the required transaction structures, such as maintaining its financial covenants and sufficient sinking fund.

Established in 2009, MLJK operates the 7.87-kilometer (km) JORR W2 North toll road for the Ulujami-Kebon Jeruk section under a concession agreement with the Indonesian Toll Road Authority, due to terminate at the end of 2044. At the end of June 2023, its shareholders consisted of PT Jasa Marga (Persero) Tbk (51%) and PT Jakarta Marga Jaya (49%), which was owned by PT Astra Tol Nusantara since November 2020(ends)