Moody's cuts Pakuwon Jati notes to Ca

Moody's Investors Service said it downgraded to Ca from Caa1 the senior secured rating for the $110 million 12% senior secured notes due November 2011 issued by Pakuwon Jati Finance BV and guaranteed by PT Pakuwon Jati Tbk. and its subsidiary, PT Artisan Wahyu. Its Caa1 corporate family rating is affirmed.

The outlook remains negative.

The downgrade follows news that Pakuwon is commencing an exchange offer and consent solicitation for the 2011 notes, which are due in November 2011, Moody's said.

If successful, the transaction will constitute a distressed debt exchange, which is a default event under Moody's definition, the agency said.

The ratings reflect a forward-looking view of the company, assuming that the transaction closes as proposed, Moody's added.

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