Fitch changes Pakuwon to positive

Fitch Ratings said it revised PT Pakuwon Jati Tbk.'s outlook to positive from stable.

The long-term foreign-currency issuer default rating, the foreign-currency senior unsecured rating and the rating on the $250 million senior unsecured notes due in 2024 were affirmed at BB-.

The notes are issued by Pakuwon Prima Pte Ltd. and guaranteed by Pakuwon and some of its subsidiaries.

Fitch said the outlook revision reflects its expectations that the scale and asset granularity of Indonesia-based Pakuwon's investment property (IP) portfolio will improve to levels commensurate with a higher rating over the next one to two years as the company continues to ramp up its portfolio.

The agency expects Pakuwon to continue to manage its development property business conservatively, and also views its development property risk as manageable, so long as the company maintains positive cash flow from operations (CFO).

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