Moody's drops Pakuwon

Moody's Investors Service said it has downgraded PT Pakuwon Jati Tbk's corporate family and senior secured bond ratings to Caa1 from B3.

The outlook is negative.

This concludes the ratings review for possible further downgrade initiated on Dec. 19, the agency said.

"The downgrade reflects the weak liquidity situation surrounding the company against the backdrop of the slowdown in the property market and tightened conditions in the credit market," said Joko Widodo, Moody's lead analyst for the company.

The presales performance of its major project - Gandaria City in south Jakarta - has been adversely affected by the weak property market, particularly in the 4Q2008. But, during Jan-Feb 2009, condo, office and mall presales and occupancy rates showed a slight improvement, when compared to end-2008, the agency added.

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