Fitch pares PP Properti to BBB-(idn)

Fitch Ratings Indonesia said it downgraded PT PP Properti Tbk.'s national long-term rating to BBB-(idn) from BBB+(idn). The outlook is negative.

“The downgrade reflects Fitch's view that PPRO's cash flow from operations (CFFO), including land bank acquisitions, will remain negative in the medium term, leading the company to increasingly rely on debt to fund its operation. Fitch believes presale cash collection will slow further due to the coronavirus pandemic and that significant payment delays from buyers under PPRO's instalment payment scheme will weaken the company's cash collection,” the agency said in a press release.

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