S&P places Jababeka on watch

S&P said it placed PT Kawasan Industri Jababeka Tbk.’s B- ratings on CreditWatch with negative implications.

“We placed our ratings on Jababeka on CreditWatch with negative implications because of rising execution risks relating to the company's refinancing plan for its senior unsecured notes maturing in October 2023,” S&P said in a press release.

“We anticipate that the company may seek new bank loans in the range of $100 million-$150 million, secured by land, inventories, or operating assets, with the remaining amount to be sought from a bond issuance. Jababeka has sufficient assets to offer as security for this amount of bank borrowings, considering a general loan-to-value (LTV) ratio requirement by banks of 40%-50%,” S&P said.

The agency said it aims to resolve the negative watch within two to three months once it has more information on Jababeka's progress in securing funds for refinancing its $300 million bond.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.