JAKARTA - PT Pemeringkat Securities Indonesia (Pefindo) rank lower Trikomsel Oke Tbk (TRIO) to "BBB" from "BBB +". Valuation give a negative outlook due to the absence of an improvement over the company's financial performance of the cellular ritil business.
Valuation Analyst, Martin Pandiangan and Niken Indriarsih in a press release here said, the ranking changes caused by corporate capital structure is more aggressive and cash flow protection is weakened due to the high working capital requirements and financed by borrowing.
Explained, Trio can revise the outlook to stable if the company can improve its capital structure and cash flow protection on an ongoing basis.
"The rating reflects the strong market position in the retail business TRIO and distribution of telecommunication products. However, the ratings are constrained by the high working capital requirements TRIO, aggressive capital structure and cash flow protection of the weak and intense competition in the industry", he explained.
Valuation Analyst, Martin Pandiangan and Niken Indriarsih in a press release here said, the ranking changes caused by corporate capital structure is more aggressive and cash flow protection is weakened due to the high working capital requirements and financed by borrowing.
Explained, Trio can revise the outlook to stable if the company can improve its capital structure and cash flow protection on an ongoing basis.
"The rating reflects the strong market position in the retail business TRIO and distribution of telecommunication products. However, the ratings are constrained by the high working capital requirements TRIO, aggressive capital structure and cash flow protection of the weak and intense competition in the industry", he explained.
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