Fitch Ratings-Singapore/Jakarta-08 June 2020: Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of Indonesia-based property developer PT Ciputra Development Tbk (CTRA) at ‘BB-‘. The Outlook remains Negative. At the same time, Fitch Ratings Indonesia has downgraded wholly owned subsidiary PT Ciputra Residence’s (CTRR) National Long-Term Rating to ‘A(idn)’ from ‘A+(idn)’ with a Negative Outlook. A full list of rating actions is at the end of this commentary.
The Negative Outlook reflects our view of the significant challenges CTRA will face and its very limited rating headroom in the near term. CTRA’s attributable pre-sales have been below IDR5 trillion, the level at which Fitch would consider negative rating action, and the pandemic has amplified the risks property developers face amid weak property demand over the next 12-18 months.
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