S&P revises Modernland Realty view to negative

S&P said it revised its outlook on PT Modernland Realty Tbk. to negative from stable and affirmed the B long-term issuer credit rating on the company and the B long-term issue rating on the company's guaranteed U.S. dollar-denominated senior unsecured notes.

“We revised the outlook to negative to reflect Modernland's diminishing liquidity buffer due to its refinancing requirement. Modernland has a Indonesian rupiah (IDR) 450 billion bridging loan due in June 2019 and US$58 million (about IDR 840 billion) in notes due in August 2019,” S&P said in a news release.

“We do not expect Modernland to have enough internally generated cash flows to pay off its maturities in mid-2019. This is even if the company significantly scales back its capital spending, which is mostly discretionary. Modernland is therefore dependent on financial markets and banking relationships to meet the refinancing needs.”

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