JAKARTA. The Indonesian Securities Rating Agency (Pefindo) lowered the rating of PT Waskita Karya (Persero) Tbk (WSKT), because it was considered vulnerable to default on a number of its obligations.

WSKT's rating has dropped to "idCCC", with the caption "Credit Watch with Negative Implication" from the previous "idBBB-". This rating is valid for the period 16 February 2023 to 16 May 2023.

"Obligors with an idCCC rating are currently vulnerable, and depend on favorable business and financial conditions to fulfill their financial commitments," wrote Pefindo in its official statement.

Previously, on 15 February 2023, the Indonesian Central Securities Depository (KSEI) announced the postponement of the payment of the 15th interest on the 15th Phase IV 2019 Series B Shelf Registration Bonds. This interest payment is under review for up to 3 months, in accordance with developments in WSKT conditions.

Meanwhile Destiawan Soewardjono, President Director of WSKT, added that the company also received an "idAAA(gg)" rating with a Government Guarantee for Bonds III Series A & B Year 2021 and Bonds IV Series A & B Year 2022 from Pefindo. (KR/LM)