JAKARTA. PT Pemeringkat Efek Indonesia (Pefindo) has downgraded PT Waskita Toll Road's (WTR) debt rating from BBB+ to BBB. The downgrade is due to the company's capital structure which relies on current debt and its revenue that depends on toll road divestments and the risk of new toll road developments.
In a report on Tuesday (21/7), Pefindo analysts Yogie Surya Perdana and Aryo Perbongso said WTR's downgraded rating is in line with the lower rating of its parent company, PT Waskita Karya (Persero) Tbk (WSKT), as a change in a company's debt rating will also impact on its subsidiaries' debt prospect. WTR's debt outlook is maintained at Negative, same as WSKT.
A company with a BBB rating, according to Pefindo's standards, will still have enough capabilities to pay its non-current debt. WTR will also pay its medium term notes (MTNs), which will mature on October 1, 2020 using internal cash from toll road divestments and government financing assistance from July to September.
Furthermore, Pefindo's report also explained that WTR's debt rating can be downgraded even lower upon failure to divest toll roads, which would threaten the company's capital structure and cash flow. The rating can also be downgraded if the company fails to complete a toll road within a set deadline. (AM/MS)