S&P changes Alam Sutera view to negative

S&P said it revised its outlook on PT Alam Sutera Realty Tbk. to negative from stable.

At the same time, the agency affirmed the B long-term issuer credit rating and the B long-term issue rating on the company's guaranteed dollar-denominated senior unsecured notes.

“The outlook revision reflects our view of Alam's rising refinancing and liquidity risk relating to its guaranteed senior unsecured notes maturing in March 2020,” the agency said in a news release.

“Alam is yet to show concrete progress on repaying or refinancing the notes totaling $235 million, or equivalent to about Indonesian rupiah (IDR) 3.6 trillion. We do not expect the company to have enough internally generated cash flows to repay the notes, even if it significantly scales back capital spending.

“Therefore, Alam would depend on financial markets and banking relationships to meet its refinancing needs.”

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