S&P rates Alam Synergy notes B

Standard & Poor's said it affirmed its B long-term corporate credit rating on PT Alam Sutera Realty Tbk. The outlook is stable.

S&P also affirmed its axBB- long-term Asean regional scale rating and affirmed the B issue rating on all of the company's outstanding senior unsecured notes.

The agency also assigned a B issue rating to a proposed issue of senior unsecured notes by Alam Synergy Pte Ltd., a special purpose vehicle that Alam Sutera owns. Alam Sutera and some of its subsidiaries will guarantee these notes.

"We affirmed the rating because we believe Alam Sutera can maintain its improved operating performance over the next 12 months despite its material single-project concentration," said S&P credit analyst Kah Ling Chan in a news release.

In S&P's view, the company has sufficient room to increase debt without undermining its "aggressive" financial risk profile. S&P views the business risk profile as "vulnerable."

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