Kawasan Industri Jababeka Tbk. PT (Jababeka) has completed an exchange offer to restructure its guaranteed US$300 million notes due in October 2023. The new notes extend the debt maturities to 2027. We view the transaction with the majority of the debtholders of the Indonesian property developer as distressed because the participating bondholders will receive less than the original promise. On Dec. 9, 2022, S&P Global Ratings lowered its long-term issuer credit rating on Jababeka to 'SD' from 'CC'. We also lowered our long-term issue rating on the company's guaranteed 2023 notes to 'D' from 'CC'. The downgrade follows Jababeka's announcement of the completion of an exchange offer for its US$300 million notes due in October 2023. Post the transaction, the
