Fitch Ratings – Singapore – 30 Nov 2020: Fitch Ratings has downgraded Indonesian homebuilder PT Ciputra Development Tbk’s (CTRA) Long-Term Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘. The Outlook is Stable. Fitch has also downgraded CTRA’s SGD150 million 4.85% senior unsecured notes due September 2021 to ‘B+’ with a Recovery Rating of ‘RR4’ from ‘BB-‘. At the same time, PT Fitch Ratings Indonesia has affirmed the National Long-Term Rating of CTRA’s subsidiary, PT Ciputra Residence (CTRR), at ‘A(idn)’ and revised the Outlook to Stable from Negative. A full list of rating actions is at the end of this commentary.
The downgrade of the Long-Term IDR reflects Fitch’s view that CTRA’s scale is no longer consistent with a ‘BB-‘ rating. We believe CTRA will not be able to increase its attributable pre-sales (including its share in jointly owned subsidiaries) to more than IDR5 trillion by 2022, the timeline we had set to achieve the minimum level for a ‘BB-‘ rating.
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