Fitch cuts Ciputra Development

Fitch Ratings said it downgraded PT Ciputra Development Tbk. ’s (CTRA) long-term issuer default rating to B+ from BB-. Fitch also downgraded CTRA’s S$150 million 4.85% senior unsecured notes due September 2021 to B+ with a recovery rating of RR4 from BB-. Concurrently, Fitch Ratings Indonesia affirmed the national long-term rating of CTRA’s subsidiary PT Ciputra Residence at A(idn) and revised the outlook to stable from negative.

The downgrade of the long-term IDR reflects Fitch’s view that CTRA’s scale is no longer consistent with a BB- rating. “We believe CTRA will not be able to increase its attributable pre-sales (including its share in jointly owned subsidiaries) to more than Rp 5 trillion by 2022, the timeline we had set to achieve the minimum level for a BB- rating,” Fitch said in a press release.

The outlook is stable.

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