Fitch drops Modernland Realty

Fitch Ratings said it downgraded PT Modernland Realty Tbk.’s long-term issuer default ratings to RD from C.

The downgrade follows the end of the 30-day grace period after the non-payment on the group’s $150 million of senior unsecured notes of due 2021, which were sold by JGC Ventures Pte Ltd. and Modernland Overseas Pte Ltd., Fitch said.

The failure to pay also triggered the cross-acceleration clause of the $240 million of 2024 notes. The RD rating indicates an issuer that, in Fitch’s opinion, experienced an uncured payment default but has not entered into bankruptcy filings and not ceased operating.

Concurrently, Fitch affirmed the ratings on the 2021 and 2024 notes, which are guaranteed by Modernland, at C with a recovery rating of RR4.

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