S&P affirms Davomas Abadi

Standard & Poor's said it affirmed the CCC+ corporate credit rating on PT Davomas Abadi Tbk. and removed it from CreditWatch, where it was placed with positive implications.

The agency also said it removed the CCC+ rating on its senior secured notes from CreditWatch with positive implications.

The outlook is negative.

The delay in its acquisition by PT Uniflora Prima means the change-of-control clause in Davomas' indenture will not be triggered, S&P said.

Davomas will rely on its own cash flows to refund the outstanding notes as the transaction with Uniflora is postponed, the agency said.

There has been no structural improvement in the company's business risk profile, despite an improved industry environment, S&P said.

The company still faces significant customer, product and single-site concentration risks, the agency added.

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