Pefindo Releases Waskita Beton Credit Rating: idB with Stable Outlook

PT Pemeringkat Efek Indonesia (Pefindo) has recently assigned a corporate and bond credit rating of idB with a stable outlook to PT Waskita Beton Precast Tbk (stock code: WSBP). This rating reflects WSBP’s effective management and commitment to sustainable growth.

Key Points:

1. Stable Outlook and Rating:
   • The idB rating with a stable outlook indicates a positive assessment of WSBP’s ability to meet its financial obligations and manage its operations effectively.
2. Corporate Commitment:
   • WSBP’s Corporate Secretary, Fandy Dewanto, highlighted the company’s ongoing efforts to improve its credit rating through business transformation, financial restructuring, and enhanced cash flow management. The company has demonstrated commitment by adhering to financial obligations and restructuring agreements.
3. Financial Performance and Restructuring:
   • WSBP has successfully completed three stages of CFADS (Cash Flow Available for Debt Service) payments totaling IDR 236.27 billion and is scheduled to make the fourth tranche payment of at least IDR 75 billion on September 25, 2024. Additionally, the company has converted 85% of its obligations to Bondholders’ Creditors into Mandatory Convertible Bonds (OWK) and has executed Private Placement Phases 1 and 2 to settle trade creditor obligations.
4. Business Transformation:
   • WSBP’s business transformation efforts have led to improved market share, increased contract values, and a rise in operating income. As of July 31, 2024, the company’s Managed Contract Value (NKD) stood at IDR 2.88 trillion, comprising various segments including Readymix, Precast, Construction Services, and Equipment Rental.
5. Future Outlook:
   • WSBP is committed to continuing its transformation program with the long-term goal of achieving an Investment Grade credit rating. This is part of a broader strategy to strengthen the company’s position in Indonesia’s concrete manufacturing industry.
6. Impact of SOE Minister’s Involvement:
   • The involvement of the Minister of State-Owned Enterprises (SOEs), Erick Thohir, has been beneficial. His support and strategic direction have positively influenced WSBP’s restructuring and transformation efforts, aligning with the Ministry’s vision for enhancing the performance and competitiveness of SOEs.
7. Governance and Risk Management:
   • The stability of WSBP’s rating also reflects its commitment to Good Corporate Governance (GCG) and effective risk management practices. These principles have helped the company maintain stakeholder trust and strengthen its industry position.

Following the release of PT Waskita Beton Precast Tbk’s (WSBP) credit rating by PT Pemeringkat Efek Indonesia (Pefindo), here are some related articles and topics that could offer additional insights:

1. Pefindo’s Credit Rating Criteria:
   • An explanation of the criteria and methodology used by Pefindo for assigning credit ratings, including what the idB rating signifies and how it compares to other ratings.
2. WSBP’s Financial Restructuring and Performance:
   • Detailed analysis of WSBP’s financial restructuring efforts, including the restructuring schemes, payment milestones, and their impact on the company’s financial health.
   • Case studies or comparative analysis of other companies in similar situations to highlight the effectiveness of WSBP’s strategies.
3. Impact of Business Transformation on Credit Ratings:
   • Articles discussing the relationship between business transformation efforts and credit ratings, including how effective restructuring can lead to improved ratings over time.
4. Role of SOE Minister Erick Thohir in Restructuring:
   • Profiles or interviews with Minister Erick Thohir on his role in the restructuring and transformation of state-owned enterprises (SOEs) like WSBP.
   • Analysis of the Ministry of SOEs’ strategic directions and how they influence the performance of SOEs.
5. Market and Industry Outlook:
   • Reports on the current state and future outlook of the concrete manufacturing industry in Indonesia, including trends, challenges, and opportunities.
   • Insights into how the overall industry environment affects companies like WSBP.
6. Corporate Governance and Risk Management:
   • Exploration of best practices in corporate governance and risk management, and how WSBP’s adherence to these principles contributes to its stable credit rating.
   • Examples of how effective governance and risk management can impact a company’s creditworthiness and stakeholder trust.
7. Investor Reactions and Market Implications:
   • Reactions from investors and analysts to the credit rating and how it affects WSBP’s stock performance and investor confidence.
   • Analysis of the potential market implications of WSBP’s stable credit rating, including future investment opportunities and challenges.
8. Upcoming Financial Obligations and Plans:
   • Information about WSBP’s upcoming financial obligations, including scheduled payments and future bond issuances.
   • Coverage of the company’s strategic plans and projections for maintaining or improving its credit rating.