S&P lowers Solusi Tunas view to negative

S&P said it revised the outlook on PT Solusi Tunas Pratama Tbk. to negative from stable.

The agency also said it affirmed the company’s BB- long-term corporate credit rating.

In line with the outlook revision, S&P said it lowered the company’s Asean regional scale rating to axBB from axBB+.

S&P also said it affirmed the BB- long-term issue ratings on the company’s outstanding guaranteed senior unsecured notes that are unconditionally guaranteed by subsidiary Pratama Agung Pte. Ltd.

The outlook revision reflects the company’s weaker revenue and EBITDA growth due to the sluggish market this year, the agency said.

With subdued domestic demand, the company’s co-location development has been slower than anticipated, S&P explained.

That resulted in a tenancy ratio of about 1.62x as of Dec. 31, 2015, which was lower than an earlier expectation of about 1.75x for that period, the agency said.

The ratings also consider the company’s stable revenues and cash flows, which the company’s long-term, inflation-linked contracts support, S&P said.

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