S&P gives B to Modernland Realty notes

Standard & Poor’s said it affirmed its B long-term corporate credit rating on PT Modernland Realty Tbk. The outlook is stable.

S&P also affirmed the axBB- long-term Asean regional scale rating on the company.

At the same time, S&P affirmed the B long-term issue rating on the company’s guaranteed outstanding senior unsecured notes.

S&P also assigned a B issue rating to a proposed senior unsecured notes issue of up to $190 million by Marquee Land Pte. Ltd., a special purpose vehicle that Modernland owns. Modernland will guarantee these notes.

S&P said its rating affirmation reflects Modernland’s small scale, its appetite for debt-funded expansion, and execution risks associated with rapid expansion. The company’s strong foothold in West Jakarta, scalable business model, and good operating efficiency stemming from high asset turnover temper these weaknesses, the agency added.

© 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.