Fitch downgrades Jababeka

Fitch Ratings said it downgraded PT Kawasan Industri Jababeka Tbk.'s (KIJA) long-term issuer default rating to CC from B-.

At the same time, Fitch downgraded the company's senior unsecured US$300 million notes due Oct. 5, 2023 to CC from B-, with a recovery rating of RR4. The notes are issued by its wholly owned subsidiary, Jababeka International BV, and are guaranteed by KIJA.

Fitch Ratings Indonesia has simultaneously downgraded KIJA's national long-term rating to CC(idn) from BB+(idn).

“The downgrade reflects increasing uncertainty over whether KIJA will be able to obtain financing to address its US$300 million notes due October 2023 amid market reports that the company may pursue a bond exchange,” Fitch said in a news release. “Cash and available committed bank lines are insufficient to repay debt maturing in the next 12 months.”

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