Fitch cuts Pakuwon Jati notes to CCC

Fitch Ratings said it downgraded PT Pakuwon Jati Tbk's long-term foreign- and local-currency issuer default ratings to CCC from B-, national long-term rating to B(idn) from BB(idn), along with the rating of the $110 million senior notes due 2011, issued by Pakuwon Jati Finance BV and guaranteed by Pakuwon and its subsidiaries, to CCC from B- and affirmed the recovery rating at RR4. Its senior bond I due 2011 also was downgraded to B(idn) from BB(idn).

The ratings are removed from Rating Watch negative.

The outlook is negative.

The downgrades reflect further weak pre-sales activities from its "superblock" development project in Gandaria, South Jakarta, Fitch said.

The downgrades also consider expectations that the Jakarta property market will continue to worsen materially in 2009, the agency said.

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