S&P lifts Gajah Tunggal’s debt rating
Standard & Poor’s has upgraded Indonesian tyre maker PT Gajah Tunggal Tbk’s debt rating from ‘B’ to ‘B+’. Explaining its decision to do so, the financial services company observes that Gajah Tunggal’s competitive cost position and leading share in the Indonesian tyre market temper any weaknesses that may arise from the company’s “aggressive” capital structure, limited financial flexibility and the cyclical and cost competitive nature of the tyre industry.