Upgrading as Liquidity Risks Ease - Mandiri Sekuritas
We upgrade ASRI as the company is on track to seeing its liquidity risks dissipating with its bond exchange close to meeting its target for roll-overs to 2024-2025. Our prior call had reflected such liquidity risks. We now revert to DCF-based SOTP NAV in our PT derivation for ASRI from a qualitative approach previously to reflect heightened repayment risks. ASRI is now a Buy.
Repayment obligations effectively deferred.
As outlined in prior notes, ASRI is on track to achieving its target of seeing rollover of bond maturities to 2024-2025 from current due dates in 2021-2022. Bondholders will receive benefits such as step-up coupons and partial asset securitization. On aggregate, ASRI has achieved 85.3% of approval from holders of both bonds, hence despite falling slightly short of its target on its 2021 bonds, should be on track to fully easing its repayment risks in the near term.
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