Fitch upgrades Agung Podomoro Land

Fitch Ratings said it upgraded PT Agung Podomoro Land Tbk.'s (APLN) long-term issuer default rating to CC from C. The agency also raised the rating on APLN's outstanding $132 million of 5.95% notes due June 2, to CC from C with an RR4 recovery rating. The notes were issued by APLN's wholly owned subsidiary, APL Realty Holdings Pte. Ltd., and are guaranteed by APLN and several subsidiaries.

“Fitch believes some kind of default is probable on the $132 million unsecured notes due June 2024 after the issuer confirmed on Nov. 23, 2023, that it has terminated a proposed tender offer to buy back part of the unsecured notes. The termination highlights APLN's limited appetite and ability to repay the notes at significantly above its proposed floor price of $600 per every $1,000 of face value,” the agency said in a statement.

The agency said it forecasts APLN’s consolidated net pre-sales, excluding bulk sales, to plunge by around 20% to Rp 1.3 trillion in 2023 compared to Rp 1.7 trillion in 2022, amid ongoing cancellations, although slower than the 4Q22 peak. Consolidated pre-sales dropped 46% year over year to Rp 933 billion in the first nine months of 2023.

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