JAKARTA. Pemeringkat Efek Indonesia (Pefindo), local rating agency, has increased the rating of  PT Wijaya Karya (Persero) Tbk (WIKA) to “idBBB-“ with a stable prospect, from the previous “idSD.”

Mahendra Vijaya, Corporate Secretary of WIKA, said that this rating is secured following the company’s full payment of Sukuk Mudharabah I Phase I Series A worth IDR 184 billion. The principal was finally paid on April 29, 2024, after its default dated December 18, 2023.

“This rating reflects the State Equity Participation (domestic investment) from the government worth IDR 6 trillion, received on April 22, 2024, which indicates the government’s support for the company in relation to its effort to improve its financial condition,” he added in the official statement.

In addition, Pefindo also raises the rating of Shelf-Registration Bond I, II, and III of WIKA to “idBBB-“ from the previous “idCCC.” Then, the rating of its Sukuk Mudharabah I, II, and II is also raised to “idBBB- (sy)” from the initial “idCCC (sy).”

For the record, the bond with “idBBB” rating indicates adequate protection parameter. However, poor economic condition or volatile situation may weaken WIKA’s ability to pay off its long-term financial obligation. The minus (-) also indicates that the rating is relatively weaker than the average in the issuer’s category, or below the average of its peers. (KR/ZH)