Moody's rates Pakuwon Jati bond B2

Moody's Investors Service said it assigned its provisional B2 corporate family rating to Indonesia's PT Pakuwon Jati, Tbk. and a provisional B2 senior unsecured rating to Pakuwon Jati Finance BV's proposed $120 million bond issuance, which will be guaranteed by Pakuwon and PT Artisan Wahyu.

Artisan will become Pakuwon's subsidiary subsequent to the acquisition of newly issued shares from Artisan.

The outlook for both ratings is stable. This is the first time that Moody's has assigned ratings to Pakuwon Jati.

The bond proceeds will be used to partly refinance the company's $40 million of existing debt and the rest will be used for capex. Moody's said it expects to affirm the ratings and remove them from their provisional status upon completion of the proposed bond issuance.

The company's financial profile, after the restructuring and after adjustments for the mandatory convertible bond, is appropriately positioned at the B2 rating, Moody's said.

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