Fitch downgrades Waskita Karya

Fitch Ratings said it downgraded PT Waskita Karya (Persero) Tbk.'s national long-term rating to B(idn) from BBB+(idn)/negative and placed the rating on rating watch negative. At the same time, the agency downgraded WSKT's senior unsecured note program and the notes issued under the program to B-(idn) from BBB(idn).

“The downgrade reflects WSKT's tight liquidity position, which is exacerbated by the coronavirus pandemic. Fitch believes this elevates WSKT's refinancing risks in repaying its near-term maturities that include its supply-chain financing (SCF) facilities and Rp 2.5 trillion in bonds maturing October 2020,” Fitch said in a press release.

The rating watch negative reflects the uncertainty over the company's ability to boost liquidity promptly to repay the near-term debt maturities and Fitch's possible re-assessment of government support, the agency said.

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