Pefindo Downgrades Wijaya Karya's Bond Rating Amid Payment Issues

Rating Downgrade Details

Pefindo has downgraded PT Wijaya Karya Tbk (WIKA)'s bond rating to idD from idCCC, affecting both conventional bonds and Sukuk Mudharabah. The downgrade was triggered by WIKA's failure to make coupon payments on the specified due dates. The affected instruments include Obligasi Berkelanjutan I Tahap II and Obligasi Berkelanjutan II Tahap I, as well as Sukuk Mudharabah Berkelanjutan I Tahap II and Sukuk Mudharabah Berkelanjutan II Tahap I.

Management Response

WIKA management has issued a response regarding the downgrade, though specific details of their statement remain limited in the public disclosure. The company's ability to address the current financial challenges will be critical in determining future rating stability.

Implications for Investors

The downgrade to idD signifies significant credit risk, potentially affecting investor confidence and WIKA's future capital raising capabilities. The company's financial restructuring efforts will likely be under intense scrutiny from both investors and rating agencies in the coming period.