S&P Global Ratings placed its B long-term issuer credit rating and issue rating on PT Alam Sutera Realty Tbk. on CreditWatch with negative implications.
The move reflects refinancing and liquidity risk the Indonesian real estate company is facing in connection with its US$235 million guaranteed senior unsecured notes due in March 2020.
S&P believes the company will have limited refinancing options in the 14 months to the maturity of the notes, weakening its liquidity and capital structure. Alam Sutera is expected to rely on financial markets and banking relationships for refinancing, as the company does not have enough internally generated cash flow to fund repayment of the notes.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.