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Pefindo affirms idBBB rating for MNC Kapital

18 March 2021 05:46

JAKARTA. PT Pemeringkat Efek Indonesia (Pefindo) assessed the adequate ability to fulfill long-term commitments prompting the rating agency to affirm idBBB ratings for PT MNC Kapital Indonesia Tbk (BCAP) and Shelf Registration Bonds II / 2018 Phase I with stable prospects.

Pefindo also stated that MNC Kapital has above average capital as well as adequate liquidity and financial flexibility. However, the ratings are constrained by indirect access to operating cash flows of its subsidiaries, implementation of synergies with the group that are still ongoing and volatility in the capital market.

Pefindo further explained that the rating would be raised if there was a significant and consistent strengthening of the Company's business profile through its subsidiaries. However, the rating could also be lowered if the Company's cash flows weaken due to the deterioration of the credit profiles of its subsidiaries.

The pandemic, according to Pefindo, had a moderate impact on MNC Kapital's credit profile due to liquidity support, which as of December 2020 the company still had an unused credit facility of IDR 2.1 trillion. (AM/LM)

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