PT Kawasan Industri Jababeka Tbk. Outlook Revised To Negative On Weaker Sales And High Debt; 'B+' Rating Affirmed

We expect subdued property sales for KIJA in the second half of the year, and do not anticipate a material reduction in the company's capital expenditure. Accordingly, we believe the Indonesian developer's leverage ratios may not materially recover in 2018, unless KIJA adjusts its capital spending. We are revising our outlook to negative from stable. This means there is a possibility we may downgrade the company over the next 12 months if KIJA's debt-to-EBITDA ratio fails to recover towards the 3.5x level by end 2018. We are also affirming our 'B+' long term corporate credit and issue ratings on KIJA and, in line with the outlook revision, lowering our regional scale rating on the company to 'axBB-' from 'axBB'. SINGAPORE

...+ We expect subdued property sales for KIJA in the second half of the year, and do not anticipate a material reduction in the company's capital expenditure. + Accordingly, we believe the Indonesian developer's leverage ratios may not materially recover in 2018, unless KIJA adjusts its capital spending. + We are revising our outlook to negative from stable. This means there is a possibility we may downgrade the company over the next 12 months if KIJA's debt-to-EBITDA ratio fails to recover towards the 3.5x level by end 2018. + We are also affirming our 'B+' long term corporate credit and issue ratings on KIJA and, in line with the outlook revision, lowering our regional scale rating on the company to 'axBB-' from 'axBB'. SINGAPORE (S&P Global Ratings) July 31, 2017--S&P Global Ratings said today that it revised its outlook on PT Kawasan Industri Jababeka Tbk. (KIJA) to negative from stable. At the same time we affirmed out 'B+' long term corporate credit rating on the company. In line with...

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