Moody's rates Kresna Graha debt A3.id

Moody's Investors Service said it assigned an A3.id national-scale rating to PT Kresna Graha Sekurindo Tbk's proposed Rp 150 billion issuance of Obligasi Kresna Graha Sekurindo I Tahun 2007 debt. The issuance consists of series-A due in 370 days, series-B due 2009 and series-C due 2010.

The outlook is stable.

The rating is based on Kresna's decent profitability, despite its volatility, the agency said. This provides the company with the financial strength to adequately service the debt. The rating also is supported by the company's revenue diversification from five business lines, with no individual line contributing more than 50% of revenue, Moody's added.

However, with Rp 96.06 billion in equity as of September 2006, the company's scope to increase its leverage is limited in the near term, the agency said.

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