INDONESIA - RATNGS - Adhi Karya (Persero) Tbk.

www.pefindo.com -PEFINDO raised the ratings of PT Adhi Karya (Persero) Tbk. (ADHI or the Company), the Company’s Bonds IV/2007 at “_idA” from “_idA-” and its Sukuk Mudharabah I/2007 at “_idA_(sy)” from “_idA-_(sy)”.  At the same time, PEFINDO also assigned “idA” rating to the proposed bond “Obligasi Berkelanjutan I Adhi Tahap I tahun 2012” with a maximum value of IDR1.25 trillion and “_idA_(sy)” rating to the proposed “Sukuk Mudharabah Berkelanjutan I Adhi Tahap I tahun 2012” with a maximum value of IDR250 billion. The outlook for the rating is “stable”.   (source)



The upgrade is mainly driven by the significant improvements in the Company’s cash flow protection measures. Other factors supporting the ratings are the Company’s strong market position in the domestic construction business and benefits of being a state-owned construction company. However, the ratings are constrained by large funding requirement for working capital and business expansion, risks related to new investments and relatively volatile business environment in construction industry.
ADHI is one of the largest construction companies in Indonesia.  Currently, the Company divided its business activities into three major categories: construction service, EPC and investments.  The Company is a public company listed at the Indonesia Stock Exchanges.  As end of December 2011, the Company’s shareholders composition consisted of Government of Indonesia (52.3%), public (42.5%), ABN Amro Bank NV (5.1%) and management/BOD (0.1%).

Rating Period: April 18, 2012 – April 1, 2013
Contact Analyst: Rachmadi Kurniawan & Vonny Widjaja

Source: http://new.pefindo.com/r_releasedetail.php?cid=1082  - June 7, 2012