Bulletin: Pakuwon's Retap Reduces Debt Headroom - S&P Global Ratings’ Credit Research

Bulletin: Pakuwon's Retap Reduces Debt Headroom

Bulletin: Pakuwon's Retap Reduces Debt Headroom - S&P Global Ratings’ Credit Research
Bulletin: Pakuwon's Retap Reduces Debt Headroom
Published May 10, 2021
2 pages (1029 words) — Published May 10, 2021
Price Free  |  Buy this Report Now

About This Report

  
Abstract:

SINGAPORE (S&P Global Ratings) May 11, 2021--S&P Global Ratings today said that PT Pakuwon Jati Tbk.'s (BB/Stable/--) US$100 million retap of its senior unsecured notes due in 2028 will reduce the company's debt headroom. The Indonesia-based property developer intends to use the proceeds for general corporate purposes. We estimate Pakuwon's adjusted debt-to-EBITDA ratio will rise to 2.3x-2.5x in 2021, from our previous expectation of 1.8x-2.0x. Debt levels will likely increase to Indonesian rupiah (IDR) 5.8 trillion-IDR6 trillion in 2021, from our earlier forecast of IDR4.4 trillion-IDR4.6 trillion. Nevertheless, an operational recovery over the next one to two years should help support the higher debt level. We project Pakuwon's debt-to-EBITDA ratio will taper down to 2.1x-2.2x in 2022. This remains below

  
Brief Excerpt:

...May 10, 2021 SINGAPORE (S&P Global Ratings) May 11, 2021--S&P Global Ratings today said that PT Pakuwon Jati Tbk.'s (##/Stable/--) US$100 million retap of its senior unsecured notes due in 2028 will reduce the company's debt headroom. The Indonesia-based property developer intends to use the proceeds for general corporate purposes. We estimate Pakuwon's adjusted debt-to-EBITDA ratio will rise to 2.3x-2.5x in 2021, from our previous expectation of 1.8x-2.0x. Debt levels will likely increase to Indonesian rupiah (IDR) 5.8 trillion-IDR6 trillion in 2021, from our earlier forecast of IDR4.4 trillion-IDR4.6 trillion. Nevertheless, an operational recovery over the next one to two years should help support the higher debt level. We project Pakuwon's debt-to-EBITDA ratio will taper down to 2.1x-2.2x in 2022. This remains below our downgrade trigger of a debt-to-EBITDA ratio consistently above 2.5x. The stable rating outlook on Pakuwon reflects our view that the company has sufficient financial...

  
Report Type:

Bulletin

Ticker
PWON@IJ
Issuer
PT Pakuwon Jati Tbk.
Sector
Global Issuers, Structured Finance
Country
Indonesia
Region
Emerging Markets
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Pakuwon's Retap Reduces Debt Headroom" May 10, 2021. Alacra Store. May 10, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Pakuwon-s-Retap-Reduces-Debt-Headroom-2644674>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Pakuwon's Retap Reduces Debt Headroom May 10, 2021. New York, NY: Alacra Store. Retrieved May 10, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Pakuwon-s-Retap-Reduces-Debt-Headroom-2644674>
  
Free
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Residential Mortgage-Backed Securities from one place.