Moody's trims Gajah Tunggal

Moody's Investors Service said it downgraded the corporate family rating of Gajah Tunggal Tbk. to Caa1 from B3. Moody's also downgraded the rating on Gajah Tunggal's $250 million of senior secured notes due in August 2022 to Caa1 from B3.

"The downgrade to Caa1 reflects our expectation that GJTL's largely unmitigated exposure to the weakening Indonesian rupiah, if sustained, will drive up debt and weaken EBITDA margins," said Stephanie Cheong, a Moody's Analyst, in a press release.

"This in turn will dampen profitability, reduce cash flows and further increase its reliance on short-term funding," she said.

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