Fitch rates Duta notes B

Fitch Ratings said it assigned a long-term issuer default rating of B to PT Duta Anggada Realty Tbk.

The outlook is stable.

The agency also said it assigned an expected B rating to its proposed senior unsecured notes due in 2019 with a recovery rating of RR4.

The notes will be issued by a wholly owned subsidiary and guaranteed by Duta and certain subsidiaries, Fitch said.

The notes are rated at the same level as Duta’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

Duta is a small development company that has limited project diversification compared with higher rated international peers, Fitch said.

Duta’s limited scale and project concentration constrain its business profile as these factors raise the risk of earnings and cash flow volatility, the agency said.

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