Moody's affirmed Alam Sutera Realty Tbk's B2 corporate family rating, with a stable outlook.
The rating agency also affirmed the B2 backed senior unsecured rating of the 2020 notes and 2022 notes issued by Alam Synergy Pte. Ltd., a subsidiary of the Indonesian real estate developer.
The corporate family rating affirmation was attributed to Alam Sutera's strong financial performance in 2017 and Moody's expectation that the company will continue to sell its land at Pasar Kermis in the Indonesian province of Banten, Java, to China Fortune Land Development Co. Ltd., generating cash flows of approximately 1.5 trillion rupiah in 2018.
The rating also reflects the developer's large and low-cost land bank, as well as its proactive approach toward debt capital management. Moody's expects Alam Sutera to rake in 1.6 trillion rupiah from core marketing sales in 2018.
As of March 27, US$1 was equivalent to 13,734.00 Indonesian rupiah.