S&P upgrades Pakuwon Jati

S&P said its ratings for PT Pakuwon Jati Tbk. and its $300 million of 4 7/8% notes due 2028 to BB+ from BB.

“Pakuwon's growing recurring income shields the company from volatility throughout industry cycles. The developer has the highest proportion of recurring income derived from its investment properties (retail malls, hotels, and offices) among speculative-grade-rated property developers in Asia,” the agency said in a press release.

S&P said it forecasts Pakuwon's recurring EBITDA interest coverage ratio to improve to 6.5x-7x over the next two years. The coverage ratio stayed above 3x in 2020, despite a 38% plunge in recurring income during the pandemic.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.