Bulletin: Strong Liquidity And Prudent Financial Management Underpin Pakuwon's Resilience

SINGAPORE (S&P Global Ratings) May 19, 2020--PT Pakuwon Jati Tbk. (BB/Stable/--) has sufficient financial flexibility to mitigate slowing sales and reduced recurring income amid the COVID-19 outbreak in Indonesia. S&P Global Ratings believes Pakuwon's large cash buffer and track record of prudent financial management place it in a better position than other rated peers to weather the downturn. Pakuwon's strong recurring EBITDA interest coverage, which we forecast at over 3x for 2020, and cash balance covering 89% of its reported debt as of end-2019 underpin the company's financial flexibility and resilience. We expect the Indonesian property developer's marketing sales to slow to about Indonesian rupiah (IDR) 1.3 trillion in 2020, from IDR1.5 trillion in 2019. The company's revenue from recurring

...May 19, 2020 SINGAPORE (S&P Global Ratings) May 19, 2020--PT Pakuwon Jati Tbk. (##/Stable/--) has sufficient financial flexibility to mitigate slowing sales and reduced recurring income amid the COVID-19 outbreak in Indonesia. S&P Global Ratings believes Pakuwon's large cash buffer and track record of prudent financial management place it in a better position than other rated peers to weather the downturn. Pakuwon's strong recurring EBITDA interest coverage, which we forecast at over 3x for 2020, and cash balance covering 89% of its reported debt as of end-2019 underpin the company's financial flexibility and resilience. We expect the Indonesian property developer's marketing sales to slow to about Indonesian rupiah (IDR) 1.3 trillion in 2020, from IDR1.5 trillion in 2019. The company's revenue from recurring income will also fall by 30%-35% owing to a significant decline in hotel occupancy and three-month equivalent of rental assistance to its retail tenants. Our forecasts assume that...

Bulletin