...March 27, 2025 This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) March 27, 2025--Pakuwon Jati Tbk. PT's growing recurring income is set to boost earnings. The resultant cash flow strength will allow Pakuwon to slightly deleverage, even with elevated capital expenditure (capex). We forecast the company's debt-to- EBITDA ratio will ease to 1.9x-2.0x in 2025 and 2026, from 2.1x in 2024. This translates into a comfortable headroom from our downside threshold of 3.0x for the '##+' long-term issuer credit ratings on Pakuwon. Contributions from new assets in Pakuwon's investment portfolio will lift the company's recurring income. We anticipate Pakuwon's recurring income from its investment portfolio to grow by about 8% to Indonesian rupiah (IDR) 5.6 trillion in 2025, and increase further to IDR6.0 trillion in 2026. This comes after an 11% increase in 2024, during which recurring income made up about 80% of Pakuwon's adjusted EBITDA. Our forecast growth will be propelled...
