Moody’s views Modernland negatively

Moody’s Ratings said it changed its outlook for Modernland Realty Tbk. to negative from stable and affirmed its ratings, including the Ca backed senior secured ratings on the restructured June 2025 notes issued by JGC Ventures Pte. Ltd. and the restructured April 2027 notes issued by Modernland Overseas Pte. Ltd. Both are wholly owned Modernland subsidiaries. Modernland and most of its subsidiaries guarantee the notes.

Under the notes’ terms, Modernland must complete $40 million of asset sales on or before mid-2023 and another $160 million on or before the end of 2024. As of February 2024, it has completed only about $65 million of asset sales.

"The negative outlook reflects our view that as we process through the current year, it remains unclear if Modernland will be able to successfully complete its outstanding asset sale obligations," said Rachel Chua, a Moody's vice president and senior analyst, in a press release.

"Even if the company meets its asset sale obligations, the negative outlook continues to highlight its refinancing risk, with its significant bond maturity in June 2025," added Chua, who is also Moody's lead analyst for Modernland.

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