S&P revises Modernland view to negative

S&P said it revised its view for PT Modernland Realty Tbk. to negative from stable on operating cash flows and cash balance substantially below the agency’s estimate.

“The revised outlook reflects the prospects of compressed interest-servicing capacity and reduced cash balance over the next 12 months, barring a substantial pickup in land sales and operating performance,” said S&P in a news release.

S&P said it estimates Modernland needs to collect at least another Rp2 trillion from sales by the end of the calendar year for its liquidity and interest-servicing capacity to stabilize.

The agency affirmed the B rating on the company and its guaranteed notes.

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