A proposed change in the composition of Jababeka's board of directors and board of commissioners by two minority shareholders has received 52% shareholder approval. This could trigger the change-of-control clause of the company's US$300 million outstanding notes. If bondholders exercise en masse their right to return the notes, this could place the company in a difficult funding position. We are placing our 'B' long-term issuer credit rating on PT Kawasan Industri Jababeka Tbk. and 'B' long-term issue rating on the company's outstanding guaranteed senior unsecured notes on CreditWatch with negative implications. We aim to resolve the CreditWatch when we are clearer about the implications on the company's liquidity stemming from the changes in its governance. SINGAPORE (S&P Global Ratings) July
