JAKARTA. Moody’s Investors Service has demoted the company’s and obligation’s outlook of PT ABM Investama Tbk (ABMM). It is due to the possible failure in paying its bond of USD 350 million, maturing August 2022.
Maisam Hasnain, the Assistant Vice President and an Analyst at Moody’s, explains that he estimates that ABMM would seek fresh funds to refinance its bond. “The plan to issue the bond still awaits the market condition. However, we are certain that ABMM is currently focusing on collecting fresh funds to cover its maturing bond,” Hasnain adds in the official statement.
The outlook demotion of ABMM and its obligations also weighs in the result of the Extraordinary General Shareholders Meeting held in May 2021. In the said meeting, ABMM obtained approval to issue a global bond worth a maximum of USD 400 million and a 9.5% interest rate.
However, Moody’s rates ABMM’s liquidity quite weak, as indicated by its cash and cash equivalents that only reached USD 109 million in December 2020. Its internal cash is also projected not to be able to cover the debt of USD 450 million in 2022.
According to idnfinancials.com, ABMM’s stock price is at IDR 815 per share during the closing of the first trading session today. It decreases by 42.81% compared to last year’s number. (KR/ZH)