Moody’s assigns Duta Anggada bond B1

Moody's Investors Service said it assigned a provisional corporate family rating of B1 to PT Duta Anggada Realty Tbk.

The agency also assigned a provisional senior unsecured bond rating of B1 to the proposed senior unsecured notes to be issued by Primary Assets Pte Ltd.—an entity wholly owned by Duta Anggada — and guaranteed by Duta Anggada and its subsidiaries.

The outlook is stable.

Proceeds from the $150 million bond will be used to finance current development projects, land acquisition, retirement of existing debt and other related fees and expenses.

Moody's said the provisional B1 ratings reflect the company's potential strong growth from its properties and its well-balanced portfolio of investment and development properties, thus supplementing more speculative development revenues with a good flow of recurring revenues.

"We expect the company's revenue to increase by 15% in 2015 and more significantly, by over 100% in 2016, as it benefits from its five on-going projects, and new project acquisitions," Moody's assistant vice president and analyst Jacintha Poh said in a news release.

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