S&P raises Jababeka

S&P said it raised its ratings for Kawasan Industri Jababeka Tbk. and its guaranteed 2023 notes to CCC+ from SD, selective default, and D, respectively. The agency also rated Jababeka’s new notes due 2027 CCC+.

“The upgrade reflects Jababeka's substantially reduced refinancing and liquidity risk in the next 12-18 months post the exchange completion. The completed exchange of $300 million notes due in 2023 extended company's key maturity to 2027. This has substantially improved the developer's liquidity profile, given limited maturities over the next 12 months.

For more details on the exchange, see Prospect News’ Dec. 8 story.

“We estimate Jababeka will have thin but sufficient cash flow and cash balance to cover its operating expenses, interest payments, and obligations over the period,” S&P said in a press release.

The outlook is stable.

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