S&P rates Pakuwon notes B-

Standard & Poor's said it assigned its B- long-term corporate credit rating on PT Pakuwon Jati Tbk., along with a B- issue rating to the five-year $110 million senior secured notes due 2011 issued by Pakuwon Jati Finance BV, a wholly owned by Pakuwon and established solely for issuing debt securities.

The outlook is stable.

The rating factors in the company's aggressive financial profile, evidenced by its high relative indebtedness, despite a couple of debt restructuring rounds, S&P said.

The rating also factors in Pakuwon's geographic business concentration in Surabaya, Indonesia's second largest city and home to its Tunjungan City mixed megadevelopment, the agency said, and its ambitious expansion plan in South Jakarta.

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