Moody's confirmed Indonesia-based PT Agung Podomoro Land Tbk's B2 corporate family rating, with a negative outlook.
The rating agency on Sept. 30 said it also confirmed its B2 backed senior unsecured rating on the 2024 notes issued by APL Realty Holdings Pte. Ltd., a wholly owned subsidiary of the Indonesian real estate company.
The confirmation indicates that Agung Podomoro Land has secured funds to fulfill its significant refinancing requirements over the next six months. The company received 800 billion Indonesian rupiah from its controlling shareholder and signed a US$127 million senior secured term facility agreement due March 2021.
Moody's expects the company's recurring revenue to grow by around 10% and recurring cash flow coverage of interest expense to remain around 0.8x over the next 12 to 18 months.
The negative outlook reflects the agency's expectation that Agung Podomoro Land will face refinancing risks related to the new secured term facility and that the company's liquidity will weaken over the next 12 to 18 months.
As of Sept. 30, US$1 was equivalent to 14,179 Indonesian rupiah.
