Moody’s rates WIKA bond Ba2

Moody's Investors Service said it assigned a Ba2 rating to Wijaya Karya (Persero) Tbk.'s (WIKA) proposed Indonesian rupiah-denominated senior unsecured bond.

The outlook is stable.

The Ba2 bond rating is in line with WIKA's Ba2 corporate family rating, because the bond constitutes WIKA's direct, unconditional, unsubordinated, and unsecured obligation.

WIKA will use the net proceeds from the bond issuance to fund capital expenditure and repay part of its existing borrowings.

"The proposed bond issuance will improve WIKA's liquidity profile, because it plans to use the proceeds to repay around IDR1.75 trillion in short-term debt, with the remaining funds allocated towards partially pre-funding planned capital expenditures and investments," Moody's analyst Maisam Hasnain said in a news release.

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