PEFINDO Affirms Pindad Rating

IdA-rated bonds have the ability to strengthen other Indonesian obligors to fulfill their long-term financial commitments. Nonetheless, the obligor's ability may be better than the higher-ranked economic conditions and obligations.

The minus sign (-) indicates that the rating given is relatively weak and the average of the categories concerned.

Pefindo for Pefindo for its very strong role for Pindad because of its role in making works, stable of business segments, and product diversification. However, the ranking by Pindad's freedom is quite high on the budget, its aggressive and slow capital structure, and its exposure to fluctuations, raw material costs.

Pindad ratings can increase if together can increase profitability, as well as the level of financial leverage and cash frequency. An increase in rank must be supported by a backlog. A large enough order. Provides adequate visibility for the next three years. However, the rating can be given if there is a significant decrease in this matter. The rating can also be below if EBITDA falls significantly below the target and / or if Pindad implements more aggressive financial policies, including higher than projected without being compensated by higher income.

PT Pemeringkat Efek Indonesia, which is widely known as Pefindo, was established on December 21, 1993 based on the Financial Services Authority (Capital Market Supervisory Agency) and Bank Indonesia.

Pefindo, which is the only influence rating company carried out by domestic shareholders, has made ratings on many companies and debt securities that it has established on the Indonesia Stock Exchange. Until now, Pefindo has ranked more than 500 companies and regional governments. Pefindo has also conducted debt securities, including conventional bonds and sub-ordinated bonds, sukuk, MTN, KIK-EBA, and mutual funds. To build a market in Indonesia, Pefindo, with various funds from the World Bank and the Asian Development Agency, has begun to rank the government since 2011. A strategic alliance with Standard & Poor's (S & P), a leading global rating company, has been conducted since 1996, which benefited Pefindo to develop international standard methodologies.

Source: Pefindo Press Release 11 October 2018, PEFINDO Affirms "idA-" Rating To PT Pindad (Persero) and MTN