Fitch revises Pan Brothers to stable

Fitch Ratings said it revised the outlook on PT Pan Brothers Tbk. to stable from positive and affirmed its long-term issuer default rating at B.

At the same time, Fitch Ratings Indonesia affirmed Pan Brothers' national long-term rating at A(idn) with a stable outlook.

Fitch said the outlook revision reflects its expectations of a more gradual deleveraging progress over the next year or two on account of Pan Brothers' intensifying working capital requirements and the delay in capacity addition, which may affect the company's operating scale and hence its bargaining power among global apparel brands.

Pan Brothers' net cash collection cycle worsened to 239 days in September 2017, from 169 days in the same period last year.

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