Fitch downgrades Agung Podomoro

Fitch Ratings said it downgraded PT Agung Podomoro Land Tbk.'s long-term issuer default rating to B+ from BB-.

The outlook is stable.

The agency also said it downgraded the $300 million of notes due 2024 to B+ from BB- and assigned a recovery rating of RR4.

The notes are issued by the company's wholly owned subsidiary, APL Realty Holdings Pte. Ltd., Fitch said, and guaranteed by Agung and several of its subsidiaries.

The downgrades follow the company's recurring revenue and presales that are lower than expectations, the agency explained.

Fitch also said it expects the mix of recurring revenue to weaken with cash flows from its investment portfolio, mainly derived from its pipeline of new hotels or from the company's joint-venture projects.

The agency also said it expects leverage, as measured by net debt-to-adjusted inventory, to remain higher than 40% in the next 24 months.

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