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PEFINDO views the risk profile for the construction sector as moderately high with a stable outlook over the next 12-18 months, reflecting our expectations that existing order backlogs and ongoing priority projects will continue to support baseline revenue generation. However, weaker new order inflows, elevated execution and cost overrun risks, as well as tight funding conditions, are likely to keep contractors’ cash flow profiles and leverage metrics under pressure, particularly state-owned contractors. As refinancing risks mount ahead of significant debt maturity walls in 2026 as well, the sector’s long-term sustainability will likely depend on aggressive debt-to-equity swaps and consolidation. Therefore, rating headroom likely will remain limited, particularly for issuers with thin liquidity buffers, high working capital needs, and reliance on external refinancing. ...