Execution risk associated with the company's fast expansion. Project concentration risk. Small land bank. Good brand recognition. Substantial recurring income from leasing properties. Untested financial discipline, with a history of debt restructuring. Increasing capital requirement for expansion. Volatile cash flows from property development. The stable outlook on PT Pakuwon Jati Tbk. (Pakuwon) reflects our view that the company's property sales and EBITDA margins will meet our expectation. The outlook also reflects our view that recurring income from the company's rental properties will help offset higher debt over the next 12 months. We may lower the rating if Pakuwon deviates from its core business and strategy, makes larger-than-expected land acquisitions, or falls substantially short of our expected contract sales in 2015.
