S&P rates Pakuwon Jati notes BB-

S&P said it affirmed its BB- long-term corporate credit rating on PT Pakuwon Jati Tbk. The outlook is stable.

S&P also affirmed the axBB+ long-term Asean regional scale rating on the Indonesian property developer. In addition, S&P affirmed its BB- long-term issue rating on the senior unsecured notes that Pakuwon Prima Pte. issued and Pakuwon guarantees.

At the same time, S&P assigned a BB- long-term issue rating to the proposed senior unsecured notes that Pakuwon Prima Pte. Ltd. will issue and Pakuwon will guarantee.

“The affirmation reflects Pakuwon's intact interest servicing capacity and ample headroom to absorb more debt despite lower-than-anticipated property sales in 2016,” said S&P credit analyst Kah Ling Chan in a news release. “We expect the company's debt-to-EBITDA ratio to not exceed our downgrade threshold of 3.0x even after the proposed notes issuance.”

Pakuwon will use the proceeds from the new notes to fully refinance its existing $200 million bonds due 2019 and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.