Moody's rates WIKA Ba2

Moody's Investors Service said it assigned a first-time Ba2 corporate family rating to Wijaya Karya (Persero) Tbk. (WIKA).

The outlook is stable.

As a government-related issuer, the company's rating reflects a combination of a b1 baseline credit assessment and two-notch uplift based on an expectation of a moderate level of extraordinary support from the government of Indonesia, Moody's said.

The company's standalone credit profile reflects its leading market position as one of the largest integrated construction companies in Indonesia with an established track record of completing large projects, the agency said, and a strong order book which provides revenue and cash flow visibility over the next few years.

WIKA has a diversified business profile with multiple revenue-generating segments focused on engineering, procurement and construction for the civil and building infrastructure, energy and industrial and property and realty sectors, Moody's said.

WIKA also operates a segment producing construction materials such as pre-cast concrete, the agency said.

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