S&P downgrades Solusi Tunas

S&P said it lowered the corporate credit rating on PT Solusi Tunas Pratama Tbk. to B+ from BB-.

The agency also lowered the long-term rating on the outstanding senior unsecured notes that the company guarantees to B+ from BB-.

The notes were issued by Pratama Agung Pte. Ltd., the company's wholly owned subsidiary.

The outlook is stable.

S&P said it downgraded Solusi Tunas because it expects a combination of subdued operating performance and still-high financial charges to translate into weaker interest-servicing capacity over the next 12 to 18 months.

Solusi's revenue and EBITDA growth has been slower than anticipated for the nine months that ended Sept. 30, S&P explained.

The agency said it sees less-pronounced growth prospects beyond 2017 amid operating challenges and the dependency on successful contract negotiations with some customers.

S&P also said it believes the company could face some potential moderate pricing pressure from upcoming lease expirations in a competitive market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.