Moody's changes Modernland view to stable

Moody's Investors Service said it affirmed the corporate family rating of Modernland Realty Tbk. at Ca.

At the same time, Moody's affirmed the Ca backed senior secured rating of the restructured $179 million 2025 notes issued by JGC Ventures Pte. Ltd. and the restructured $268 million 2027 notes issued by Modernland Overseas Pte. Ltd. JGC Ventures and Modernland Overseas are wholly owned subsidiaries of Modernland, and the notes are guaranteed by Modernland and most of its subsidiaries.

Moody's has also changed the outlook to stable from negative.

“The change in outlook to stable reflects Modernland's completion of the restructuring of its U.S. dollar notes, which led to an improvement in the company's liquidity over the next 12-18 months. Modernland's liquidity is further supported by proceeds of around IDR 1 trillion from the sale of its 33% stake in PT Astra Modernland,” said Jacintha Poh, a Moody's senior vice president, in a news release.

“The affirmation of Modernland's Ca rating reflects its unsustainable capital structure, as indicated by its extremely high leverage because of weak operating performance.”

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