We believe Pakuwon's leverage will gradually improve over the next two years owing to the company's steady growth in property sales, increasing recurring income, manageable capital spending, and stable debt balance. We also expect Pakuwon's financial stability and debt servicing capability to materially improve as the Indonesia-based real estate development and investment company ramps up its investment property portfolio. We are raising our long-term issuer credit rating on Pakuwon to 'BB' from 'BB-' and our long-term issue rating on the company's outstanding guaranteed senior unsecured notes to 'BB' from 'BB-'. The stable outlook reflects our expectation that Pakuwon will grow conservatively over the next 24 months with satisfactory project execution and stable cash flow adequacy. On June 7, 2018, S&P
