Fitch puts Modernland Realty on watch

Fitch Ratings said it placed PT Modernland Realty Tbk.'s long-term issuer default rating of B on rating watch negative.

“The RWN reflects heightened refinancing risks due to the coronavirus pandemic. Uncertainty over the depth and duration of the pandemic in Indonesia may hamper the company's ability to refinance its $150 million bond due August 2021. The risks are more pronounced in light of the inherent cyclicality of residential-property demand, and the volatile nature of industrial land-bank and bulk sales. Prolonged weakness in pre-sales is likely to add pressure to Modernland's cash flows and financial profile, which may further limit its access to the debt and capital market,” said Fitch in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.