JAKARTA – Moody's Investors Service has downgraded the debt rating of PT Alam Sutera Realty Tbk (ASRI) from B3 to Caa2 due to lower internal funds to settle its debts.
According to Moody's Vice President and Senior Credit Officer Jacintha Poh, Alam Sutera's rating was downgraded because the company is likely to require external funds to extend the tenors of debts maturing in 2021.
Recently, Alam Sutera announced that it would repay notes maturing in 2021 worth US$60 million. US$44 million will be obtained via a loan facility from PT Bank Permata Tbk (BNLI) and PT Bank Central Asia Tbk (BBCA), while the remaining US$20 million will be sourced from hedging.
However, the companny still has US$69 million (Rp 1.1 trillion) in cash reserves as of September 2019, enough for working capital for the next 18 months, which requires Rp 600 billion. (ARM/MS)