Fitch rates Intiland, notes B

Fitch Ratings said it assigned Intiland Development Tbk (PT) an expected long-term foreign-currency issuer default rating of B with a stable outlook.

At the same time, the agency assigned the company an expected senior unsecured rating of B and an expected rating of B on its proposed dollar-denominated senior unsecured notes with a recovery rating of RR4, to be issued by Intiland and guaranteed by some subsidiaries.

The expected issuer default rating assumes that Intiland will raise sufficient funds from the proposed dollar notes to refinance secured debt, which will improve the company's liquidity and capital structure, Fitch said.

The agency said the ratings reflect Intiland's long property development record in Jakarta and Surabaya, Indonesia's two largest cities.

The company's residential projects are mostly located within proximity of each city's central business district and therefore target more affluent middle- to high-end buyers, the agency said.

The ratings are constrained by limited leverage headroom, as measured by net debt/adjusted inventory, and more volatile presales than B category peers, Fitch added.

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