JAKARTA. Pemeringkat Efek Indonesia or Pefindo, a local rating agency, has demoted the ratings of bonds and sukuk mudharabah issued by PT Wijaya Karya (Persero) Tbk (WIKA).

The rating has been lowered to “idBBB” with a Negative outlook from the previous “idA” with a Stable outlook. This rating applies to the Shelf-Registration Bonds I, II, and III and Shelf-Registration Sukuk Mudharabah I, II, and III of WIKA.

Mahendra Vijaya, Corporate Secretary of WIKA, admitted that the rating alteration is Pefindo’s right as a rating agency. He deemed this change a normal occurrence.

“It is appropriate to the dynamic of a company, and it is not a permanent state,” Vijaya mentioned in the information disclosure in Indonesia Stock Exchange (IDX).

In the official disclosure, Pefindo mentioned that the reason behind this downgrade is its heavily aggressive capital structure. The liquidity of the company is also deemed insufficient to fulfil its short-term financial obligations, which will soon mature.

Vijaya added that WIKA is currently able to fulfil its obligations. Mid-May 2023, the company still managed to pay off the coupon of Bonds and Sukuk Mudharabah II Phase II Year 2022 of IDR 46.5 billion. (KR/ZH)