ERJ staff report (DS)
Jakarta - Reuters debt rating service has upgraded its opinion of tyre maker Gajah Tunggal. Reuters said the move reflects the company's aggressive capital structure, exposure to the cyclical and competitive tyre manufacturing industry, and limited financial flexibility.
Reuters said, â€œWe expect Gajah Tunggal's financial risk profile to strengthen to "aggressive" over the next 12-18 months. We forecast that the company's debt-to-EBITDA ratio will decline to less than 3x in 2012, and to below 2.5x in 2013, under our base-case scenario. â€œ
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Press release from Reuters