Global rating major Moody’s Investors Service says in a new report that most Indonesian companies will face negative credit conditions in 2020 amid slowing economic growth, commodity price weakness and increasing refinancing risk.
However, conditions will remain supportive for the infrastructure sector, given continued power demand and manageable capital spending by port operators.
Most infrastructure issuers will maintain stable credit quality, given their established market positions and long-term contracts with availability-linked revenue, where they get paid in full regardless of product demand, as long as they can deliver the full contracted service.
