Research Update: Kawasan Industri Jababeka Downgraded To 'CCC' On Rising Refinancing Risk; Outlook Negative

Refinancing risk for Kawasan Industri Jababeka Tbk. PT (Jababeka) on its US$300 million notes maturing in October 2023 has increased owing to slower execution on its refinancing plan than we expected. With less than 14 months to maturity and Jababeka's notes trading at a steep discount, we see an increasing likelihood that the company would undertake debt capital market transactions that we may consider as distressed. On Aug. 19, 2022, S&P Global Ratings lowered its long-term issuer credit rating on Jababeka and issue ratings on the company's notes to 'CCC' from 'B-'. We removed the ratings from CreditWatch, where they were placed with negative implications on June 10, 2022. The negative outlook reflects the heightened likelihood that Jababeka would undertake

...- Refinancing risk for Kawasan Industri Jababeka Tbk. PT (Jababeka) on its US$300 million notes maturing in October 2023 has increased owing to slower execution on its refinancing plan than we expected. - With less than 14 months to maturity and Jababeka's notes trading at a steep discount, we see an increasing likelihood that the company would undertake debt capital market transactions that we may consider as distressed. - On Aug. 19, 2022, S&P Global Ratings lowered its long-term issuer credit rating on Jababeka and issue ratings on the company's notes to '###' from 'B-'. We removed the ratings from CreditWatch, where they were placed with negative implications on June 10, 2022. - The negative outlook reflects the heightened likelihood that Jababeka would undertake debt capital market transactions that we may consider as distressed over the next 12 months....

Research Update