JAKARTA. Fitch Ratings has demoted long-term rating of PT Pan Brothers Tbk (PBRX) to ‘RD’ (Restricted Default) level from the previous ‘C.’

Fitch has also reaffirmed the rating of PB International B.V. to level ‘C’ with recovery rating of ‘RR4.’ On the same occasion, Fitch has also lowered national long-term rating of PBRX to ‘RD(idn)’ from the initial ‘C(idn).’

In the official statement, Fitch mentioned that the rating demotion is decided after PBRX failed to pay off the coupon of bond maturing on January 25, 2024. “The national rating of ‘RD’ indicates default on bond, loan, or other material financial obligations. However, the issuer has yet to be declared as bankrupt,” added Fitch.

Responding to this news, Fitri Ratnasari Hartono, Director of PBRX, said that currently, her party has held a General Meeting of Bondholders. In addition, the company has also sent an appeal letter to trustee regarding the plan of bond’s coupon payment.

“Fitch Ratings will reevaluate the rating upgrade once there has been a completion of payment,” Hartono added in the information disclosure in Indonesia Stock Exchange (IDX) today (14/3). (KR/ZH)