Moody’s downgrades Modernland

Moody’s Investors Service said it downgraded the corporate family rating of Modernland Realty Tbk. to Caa1 from B3.

At the same time, Moody’s lowered the backed senior unsecured rating of the 2021 notes issued by JGC Ventures Pte. Ltd. and the 2024 notes issued by Modernland Overseas Pte. Ltd. to Caa1 from B3. Both JGC and Modernland Overseas are wholly owned subsidiaries of Modernland. Modernland and most of its subsidiaries guarantee the notes.

“The downgrade reflects our expectation that Modernland’s cash flows will fall significantly because of coronavirus-led disruptions, such that the company will be reliant on external funds to cover ongoing cash needs and debt maturities in 2020 and 2021,” said Jacintha Poh, a Moody’s vice president and senior credit officer, in a press release.

The outlook remains negative.

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