Fitch upgrades Indonesia’s Jababeka to B+

Fitch Ratings has upgraded Indonesia’s township developer, PT Kawasan Industri Jababeka Tbk’s (Jababeka), long-term issuer default rating to “B+” from “B” with stable outlook.

At the same time, Jababeka’s US$175 million five-year senior unsecured notes have also been upgraded to ‘”B+” from “B” with a recovery rating of “RR4”. Fitch has also assigned a senior unsecured rating of “B+”.

“The upgrade follows the commencement of Jababeka’s 130MW gas-fired power plant in January 2013,” Fitch said in an official release on Friday.

“Power sales are based on a long-term off-take agreement with state electricity company PT Perusahan Listrik Negara [PLN, BBB-/Stable], which will add stability to Jababeka’s cash flow.”

Source: The Jakarta Post
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