Fitch upgrades Pakuwon Jati

Fitch Ratings said it upgraded PT Pakuwon Jati Tbk.'s long-term issuer default rating to BB from BB-.

The agency also said it upgraded the company's senior unsecured rating and the rating on its $250 million notes due 2024 issued by its wholly owned subsidiary, Pakuwon Prima Pte Ltd., to BB from BB-.

The outlook is stable.

The upgrades are because Pakuwon Jati has achieved sustained positive cash flow from operations and seen a recurring EBITDA growth to higher than $120 million, Fitch explained.

The agency said it believes the company's risk profile is more closely aligned with an investment-property company than a developer.

Its development business also is not a drag on its overall risk profile as the company has a recent track record of prudent project execution, Fitch added.

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