Fitch Ratings upgraded Indonesian developer PT Agung Podomoro Land Tbk's long-term issuer default rating to CCC+ from CCC- following its repayment of debt.
The company was able to repay 1.2 trillion Indonesian rupiah of syndicated loan due Sept. 30; 750 billion rupiah of loans from PT Bank Maybank Indonesia Tbk; and 550 billion rupiah in domestic bonds due December 2019 and March 2020.
The repayment was mostly funded through 800 billion rupiah in shareholder advances and 1.8 trillion in bridge loans from private equity fund SSG Capital Management.
Fitch said that while this alleviates pressure on liquidity, Agung Podomoro's operating cash flows will remain negative in the next 18 to 24 months as the developer will likely fund upcoming dues with additional borrowings.
The company has about 500 billion rupiah in loans due 2020 and 790 billion rupiah in loans due 2021. Fitch said these maturities will be manageable thanks to cash flows from the company's individual projects.
As of Oct. 4, US$1 is equivalent to 14,142.00 Indonesian rupiah.
