Execution risk associated with fast expansion. Smaller land bank than that of peers. Good brand recognition. Substantial recurring income from leasing properties. High capital requirement for expansion. Volatile cash flows from property development. Growing track record of operating at moderate debt levels and adherence to financial policies. The positive outlook reflects the prospects for an upgrade in the next 12 months if PT Pakuwon Jati Tbk. (PWON) consolidates its record of prudent financial management and control over leverage while rolling out its property development and investment operations. In our base case, we expect the company's ratio of debt to EBITDA to be 2.0x-2.2x and EBITDA interest coverage to be 5.5x-6.0x for 2015 and 2016. We could raise the rating, most
