Fitch rates Ciputra notes BB-

Fitch Ratings said it assigned an expected BB- rating to PT Ciputra Development Tbk.'s proposed unsecured unsubordinated Singapore dollar medium-term notes.

The proposed notes are rated at the same level as the company's long-term issuer default rating.

The rating on the notes is not notched down despite being structurally subordinated because Fitch said it believes the noteholders will not be impaired as prior ranking debt is less than 2.5x of Ciputra Development's EBITDA.

The agency also said it expects Ciputra Development's financial profile to remain within the parameters of its BB- issuer default rating as part of the proceeds would be used for refinancing existing foreign-currency unsecured debt.

The rest of the funds will be for working capital needs, as well as potentially refinancing existing local-currency secured debt, Fitch added.

The company is one of Indonesia's most diversified property developers by product, geography and segmentation, the agency said.

The diversified properties mean that the group generates multiple revenue streams across various segments of the property market. Its commercial property business also provides strong debt service visibility with a robust recurring coverage ratio, Fitch added.

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