JAKARTA. Moody's is reviewing the "Ba2" rating given to PT Saka Energi Indonesia, a subsidiary of PT Perusahaan Gas Negara (Persero) Tbk (PGAS).
The review is conducted due to Saka Energi's liquidity condition, which is weakening due to legal issues.
Vikas Halan, Vice President of Moody's, said Saka Energi's financial performance will be weaker. "The review to downgrade (is done) following the verdict of the Indonesian Supreme Court, which holds Saka Energi Indonesia responsible for taxes and fines totalling US$ 255.4 million," Halan said in his research report.
Moreover, said Halan, Saka Energi must also repay shareholder loans that are due in January 2021. While Saka Energi only has cash and cash equivalents of US$ 400 million as of December 2019. (KR/AR)