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

The rating agency also assigned the Indonesian property developer an expected senior unsecured rating of B(EXP) and an expected B(EXP) rating on its proposed U.S. dollar senior unsecured notes issuance, with a recovery rating of RR4.

The issuer default rating was attributed to the expectation that the developer will raise enough funds from the issuance to refinance secured debt, leading to an improvement in its liquidity profile and capital structure. The rating is also driven by Intiland's local property development record in Jakarta and Surabaya, Indonesia, as well as its expanding investment portfolio, Fitch said.

Fitch expects the company's attributable pre-sales to total 1.7 trillion rupiah in 2018 due to weaker-than-expected industrial land sales and the recent terror attack in Surabaya, among other factors.

As of July 26, US$1 was equivalent to 14,453 Indonesian rupiah.