Pefindo announced Tuesday it had lowered Perumnas’ medium term notes (MTN) I/2017 Series A to idD from idBBB+ following the company’s failure to pay its maturing principal worth Rp 200 billion (US$13 million) due on April 28.

“A debt security is rated idD when it is in payment default, or default of a rated bond occurs automatically upon the first occurrence of non-payment of the bond,” Pefindo wrote in a statement.

It also downgraded the ratings for the company’s 12 other MTNs issued between 2016 and 2019 to idCCC from the previous idBBB+. The idCCC rating reflects the securities’ vulnerability to a default, depending on the issuer’s business and financial conditions to meet its long-term financial commitments on the securities.

Pefindo also lowered Perumnas’ company rating to idSD, or selective default, from idBBB+.

“The idSD rating reflects the fact that the issuer has failed to pay one or more of its financial obligations when it is due, but still makes timely payments on its other debt securities,” the ratings agency said in the statement.

Perumnas’ assets stood at Rp 10.38 trillion as of December 2019, higher than the Rp 10.01 trillion recorded the previous year. Its adjusted debt stood at Rp 4.82 trillion last year, up from Rp 3.65 trillion in 2018.

Throughout 2019, the property developer’s sales, which focus on the middle-to-low income segment, nosedived almost 68 percent to Rp 855 billion. It also recorded a loss of Rp 408 billion last year, a stark contrast to its performance in 2018 when it recorded Rp 305.8 billion in net income.

Perumnas also recorded negative earnings before interest, tax, depreciation and amortization (EBITDA) of Rp 11.2 billion last year, far removed from its 2018 EBITDA of Rp 603.4 billion. 

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