PEFINDO: PT Pembangunan Perumahan (Persero) Tbk’s maturing bonds rated “idA”

(May 3, 2021)--PEFINDO has affirmed its “idA” rating for PT Pembangunan Perumahan (Persero) Tbk’s (PTPP) Shelf-Registered Bond II Year 2018 Serie A of IDR 1,040 billion that will mature on July 6, 2021. PTPP plans to repay its maturing bond using proceed from fund-raising corporate action plan. We also noted that PTPP has relatively strong financial flexibility to support its plans to repay the maturing bond. As of December 31, 2020, PTPP had unused credit facilities of IDR 8,723.9 billion. On top of that, PTPP also had cash balances of IDR 7,512 billion.

Debt security rated idA indicates that the issuer’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian issuers, is strong. However, the issuer’s capacity is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated issuers.

Established in 1953, PTPP is one of the largest construction and engineering, procurement, and construction (EPC) companies in Indonesia. It is expanding into the property, realty, precast sectors, as well as heavy equipment rental and investment in the energy and infrastructure sectors. As of December 31, 2020, its shareholders were the Indonesian government (51.0%), the Employees Cooperative (Kopkar) (0.07%), and the public (48.93%). (ends)