International Rating Agencies Doubtful Over Indonesian Companies’ Ability to Repay Debts

International rating agencies have downgraded the ratings and outlooks of Indonesian corporates based on reasons related to liquidity risks, concerns over ability to repay debt, depreciation of the IDR, low commodity prices and overall weak demand.

Moody’s Investors Service has lowered the ratings of property developers Agung Podomoro Land and Alam Sutera Realty, as well as tyre producer Gajah Tunggal and coal miner Bumi Resources. Meanwhile, Fitch Ratings has downgraded private lender Bank Central Asia, while Standard & Poor’s has put Alam Sutera on credit watch negative.

Credit rating outlooks on several companies, including oil and gas firm Medco Energi Internasion...