Fitch lifts Ciputra Development

Fitch Ratings said it upgraded PT Ciputra Development Tbk.'s (CTRA) long-term issuer default rating and its S$150 million of unsecured notes due 2026 to BB- from B+. to BB- from B+

“The BB- long term IDR and stable outlook reflect our view that CTRA will maintain its annual attributable contracted sales, excluding minorities' share, above Rp 5 trillion over the medium term. This is supported by CTRA's well-diversified contracted sales mix and land bank across several key cities, projects and price points, allowing CTRA to nimbly cater to changing consumer preferences. Consequently, we expect the company can navigate softer housing demand this year amid rising inflation and interest rates,” Fitch said in a press release.

Though the agency said it projects CTRA to post negative free cash flow in 2023-2024. The company’s consolidated cash balance was around Rp 8.4 trillion at end-September 2022 and Fitch estimated that it was about Rp 8 trillion excluding the share of minorities.

The outlook is stable.

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