PEFINDO: PT Jasa Marga (Persero) Tbk rated “idAA-”
Wednesday, May 5 2021 - 08:16 PM WIB
(May 5, 2021)--PEFINDO has affirmed its “idAA-” rating to PT Jasa Marga (Persero) Tbk (JSMR) and JSMR’s Shelf Registered Bond II Year 2020 of up to IDR4.5 trillion and “idA1+” rating for JSMR’s Commercial Paper Year 2020. The outlook of 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 those of other Indonesian obligors. The Minus (-) sign indicates that the rating is relatively weak within its category.
A short-term debt security rated idA1+ has the highest rating category assigned by PEFINDO. The issuer’s capacity to meet its shortterm financial commitments on the debt security, relative to those of other Indonesian issuers, is superior.
The corporate rating reflects strong government support for completing toll road projects, JSMR’s dominant position in the toll road sector, its diversified toll road portfolio with long concession period, and its strong financial flexibility. The rating is constrained by its aggressive capital structure and business risks related to new toll roads.
The rating may be raised if the Company improves its capital structure by deleveraging its debt, if its new toll roads consistently attract traffic volume higher than projected on a sustained basis, or if we view a stronger government support. The rating may be lowered if the prolonged pandemic further reduced its traffic volume significantly, resulting in significantly lower toll revenue than projected, or if it incurs higher debt than projected, which may weaken its cash flow protection measures.
JSMR is the largest toll road operator in Indonesia. Its portfolio includes 13 toll road concessions at parent company, 18 operated toll roads at subsidiaries, and 3 toll roads under construction. As of December 31, 2020, its shareholders were the Government of Indonesia (70.0%), DJS Ketenagakerjaan-JHT (3.4%), BNYM RE BNYMLB RE Employees ProvidentFD (2.5%), PT Taspen (Persero) (2.2%), and the public (21.9%). (ends)