Growing recurring income from Pakuwon Jati Tbk. PT's investment portfolio will bolster the company's performance and financial resilience over the next two years. The Indonesian developer's prudent financial management and large cash holdings will support its expansion into new cities, in our view. On Sept. 11, 2023, S&P Global Ratings raised its long-term issuer credit and issue ratings on Pakuwon to 'BB+' from 'BB'. The stable rating outlook reflects our view that Pakuwon's sizable recurring income will support performance resilience, such that its debt-to-EBITDA ratio will remain at 2.0x-2.3x over the next two years. We forecast the proportion of such income for the company will increase to 70%-75% in 2023 and 2024, from about 65% in 2022. It also compares
