Moody's cuts RENT

Moody's Investors Service said it downgraded PT CSM Corporatama's (RENT) national scale issuer and bond ratings to Ba1.id from Baa2.id. The ratings are on review for further downgrade.

"The ratings downgrade mainly reflects the heightened refinancing risk with regard to RENT's Rp 100 billion bond due Nov. 11," Moody's analyst Joko Widodo said in a written statement.

The Ba1.id ratings also recognize RENT's relatively high leverage and low interest coverage, Moody's said.

Partially mitigating such concerns are the company's long-term corporate customer contracts with some well-established local as well as multinational customers and its strong relationship with minority shareholder Indomobil, the agency said.

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