Fitch rates Agung Podomoro notes BB-

Fitch Ratings said it assigned a first-time long-term issuer default rating of BB- to PT Agung Podomoro Land Tbk. with a stable outlook.

The agency also said it assigned an expected BB- rating to the proposed unsecured unsubordinated dollar-denominated notes to be issued by wholly owned subsidiary APL Realty Holdings Pte Ltd.

The proposed dollar notes will be guaranteed by Agung Podomoro and several of its subsidiaries, Fitch explained.

The company is a leading property developer in Indonesia with a land bank of more than 8 million square meters and investment properties and hotels that generated combined recurring revenue of Rp 1.6 trillion in 2016, the agency said.

The proposed notes are rated at the same level as Agung Podomoro's long-term issuer default rating because they constitute direct and unsubordinated obligations of the company, Fitch said.

The proceeds will be used to refinance existing local-currency secured debt, which will free up more of its property portfolio from encumbrances, the agency said.

Fitch said it expects Agung Podomoro's secured debt-to-EBITDA to remain at less than the 2x to 2.5x threshold.

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