Fitch downgrades Alam Sutera

Fitch Ratings said it downgraded PT Alam Sutera Realty Tbk.'s long-term issuer default rating and senior unsecured debt rating to B from B+ and separately placed the ratings on rating watch negative (RWN).

Fitch said the downgrade reflects Alam Sutera’s lower annual contracted sales over the last two years, which the agency believes is due to the company's weaker sales execution capabilities compared with peers.

Fitch does not expect Alam Sutera’s scale of operations, as measured by annual contracted sales, to improve materially in the next two years because as much as Rp 2 trillion of its sales pipeline still consists of its new-build prime office tower, the Tower, in central Jakarta amid an office-space glut.

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