S&P rates Solusi Tunas Pratama notes BB-

Standard & Poor’s said it assigned its BB- long-term corporate credit rating to PT Solusi Tunas Pratama Tbk.

The outlook is stable.

S&P also assigned an axBB+ long-term Asean regional scale rating to the company and a BB- long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes to be issued by Pratama Agung Pte. Ltd., a wholly owned subsidiary of PT Solusi Tunas Pratama.

“The rating on STP reflects our view of the company’s smaller scale of operations than its peers in Indonesia, its exposure to geographic and customer concentration risks, and high leverage,” said S&P credit analyst Abhishek Dangra in a news release. “STP’s stable cash flows from long-tenor contracts and its above-average profitability temper these weaknesses.”

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