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Trade War Ripple? Indonesian Textile Maker Misses Dollar Debt Payment

Operations Inside The Tanjung Priok Port As Indonesia Trade Balance Shifts To Surplus

Photographer: Dimas Ardian/Bloomberg

A large Indonesian textile maker that missed a dollar loan payment last week appears to have become an unlikely victim of the U.S.-China trade war, putting a spotlight on potential stresses from the tussle in global credit markets.

S&P Global Ratings cut its credit evaluation of dollar bonds sold by a subsidiary of Duniatex Group by six notches late yesterday, after another group company missed a payment on a syndicated dollar loan due July 10. The ratings company pointed to ripple effects from the U.S.-China trade war in part for Duniatex’s worsened liquidity.