S&P trims Gajah Tunggal

S&P said it lowered its long-term issuer credit rating on PT Gajah Tunggal Tbk. to CCC+ from B-.

S&P also lowered the long-term issue rating on the company’s $250 million senior secured notes to CCC+ from B-.

The outlook is negative.

“We lowered the ratings on PT Gajah Tunggal Tbk. because we believe the coronavirus outbreak will undermine tire sales, while margins will suffer from a weakening Indonesian rupiah (IDR). Lower raw material prices will temper but not fully offset these effects,” S&P said in a news release.

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