“WSBP is optimistic that it can improve its credit rating by carrying out business transformation by strengthening financial fundamentals and improving the company's cash flow as well as timely fulfillment of financial obligations under the homologation agreement as we have always done,” said Fandy Dewanto, Corporate Secretary of WSBP.
This rating is given based on WSBP's established position in the Precast and Readymix concrete industry. WSBP also continuously strives to strengthen the company's financial fundamentals, implement restructuring schemes, and improve cash flow. WSBP has shown good performance through the successful implementation of all financial restructuring schemes agreed in the Settlement Agreement.
WSBP has completed 3 stages of CFADS payments with a total value of Rp236.27 billion on time. The 4th tranche payment is scheduled on September 25, 2024 with a value of at least IDR75 billion. In addition, the Company has also completed the conversion of 85% of obligations to Bondholders' Creditors through the issuance of Mandatory Convertible Bonds (OWK). WSBP has also carried out Private Placement Phase 1 and 2 in order to settle obligations to trade creditors.
In addition, the business transformation program implemented by WSBP has also shown positive results. This can be seen from the strengthening of market share, increasing contract value, and a significant increase in operating income. As of July 31, 2024, WSBP's Managed Contract Value (NKD) reached Rp2.88 trillion consisting of sales of Readymix products of Rp1.05 trillion, Precast of Rp1.11 trillion, and Construction Services worth Rp 704.86 billion, as well as Equipment Rental worth Rp17.62 billion.
“We are committed to continuing the ongoing business transformation program, with the aim of achieving an Investment Grade credit rating in the long term,” added Fandy.
This rating is expected to be a strong foundation for WSBP to continue to grow and strengthen the company's position in the concrete manufacturing industry in Indonesia. The participation of the Minister of SOEs, Erick Thohir, has also had a positive impact on the restructuring and transformation process within SOEs, including WSBP. The support and strategic direction provided has helped the company achieve this credit rating, which is in line with the vision of the Ministry of SOEs in strengthening the performance and competitiveness of BUMN Karya.
In addition, the stability of this rating is also a testament to WSBP's commitment in implementing Good Corporate Governance and effective risk management in every aspect of its operations. By applying these principles, WSBP has managed to maintain the trust of stakeholders, strengthen the company's position, and maintain sustainable performance in the Precast and Readymix concrete industry in Indonesia.
Reporter: PR Wire
Editor: PR Wire
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