Fitch lowers Ciputra view to negative

Fitch Ratings said it revised the outlook on PT Ciputra Development Tbk. to negative from stable.

The agency also said it affirmed the company's long-term issuer default rating at BB-.

Fitch also revised PT Ciputra Residence's outlook to negative from stable and affirmed its national long-term rating at A+(idn).

The outlook revision reflects a view of heightened risks around Ciputra Development's ability to increase its annual attributable property presales to more than Rp 5 trillion in the next one- to two-years, the agency said.

The ratings are supported by its established domestic franchise and geographically diverse projects, Fitch said.

The agency said it may downgrade Ciputra's ratings if its attributable presales do not get back on track toward more than Rp 5 trillion by 2021.

Fitch also said it expects the company's significant exposure to the low- to mid-end market, where demand is driven more by first-time home buyers.

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