Dharmala rating downgraded to A-4, B

Dharmala rating downgraded to A-4, B

JAKARTA (JP): Pefindo rating agency has downgraded Dharmala
Intiland's commercial paper program to a A-4 and B.

Dharmala Rp 80 (US$33.9 million) billion commercial paper
program was initially rated in March.

The A-4 rating was assigned on the commercial paper with a
moderate investment risk while the B rating was given to the
paper with a high investment risk.

The decision to adjust the rating was because the company's
financial performance had declined, the agency said.

It said the buildup of Dharmala's outstanding commercial paper
had put an additional burden on its short-term financial
liabilities.

The agency said the increase in liabilities had depressed the
company's interest coverage and liquidity.

"In the meantime, the latest developments seen in the property
business have hurt the company's operating cash flow to some
extent," it said.

The agency said it would soon focus on the Dharmala's ability
to market its property.

It also said it would closely watch any developments in the
company's leverage and liquidity levels. (hen)