Fitch rates PP Properties

Fitch Ratings said it assigned a national long-term rating of BBB+(idn) to PT PP Properti Tbk.'s proposed Rp 800 billion bond due 2022.

The bond is the second issuance launched from PP Properti's Rp 2 trillion program.

The issue is rated at the same level as the company's national long-term rating because the notes represent senior unsecured obligations of the issuer, Fitch said.

The company plans to use about 44% of the issuance proceeds for working capital purposes, a about 46% for land acquisition payments and other investments and the remaining 10% for debt refinancing purposes, the agency said.

The ratings reflect the company's good track record in high-rise development with projects in strategic locations, Fitch said.

This is counterbalanced by its smaller scale compared with peers rated higher on the national scale, the agency said.

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