S&P rates Pakuwon notes BB

S&P said it assigned its BB long-term issue rating to PT Pakuwon Jati Tbk.'s planned senior unsecured notes.

“We rate the proposed notes the same as the issuer credit rating on Pakuwon. We do not notch down the issue rating for subordination risk because a majority of the company's assets are in Indonesia, a jurisdiction where we believe the priority of claims in a bankruptcy scenario is highly uncertain,” S&P said in a press release.

The company will use the issuance proceeds to refinance its $250 million notes ahead of their 2024 maturity and for general corporate purposes.

“If the issuance is successful, the company will have no major debt maturing over the next five years,” the agency said in a press release.

The outlook is stable.

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