S&P downgrades Multipolar, Matahari

S&P said it lowered the long-term corporate credit rating on PT Multipolar Tbk. and its 50.2%-owned subsidiary, PT Matahari Putra Prima Tbk., to B from B+.

The outlook is stable.

The agency also said it lowered the rating to B from B+ on the $230 million senior unsecured notes that Pacific Emerald Pte. Ltd. issued.

Multipolar unconditionally guarantees the notes.

The agency also said it affirmed the axBB- Asean regional scale rating on Multipolar and Matahari.

The downgrades reflect a forecast for lower-than-expected cash flow adequacy and interest servicing ratios through 2017, S&P said.

That follows weak results for the quarter that ended March 31, the agency added, for most of the company’s retailing and non-retailing operations.

Matahari’s ratings were downgraded to reflect the downgrade of its parent company, S&P said.

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