Fitch lowers Jababeka

Fitch Ratings said it downgraded PT Kawasan Industri Jababeka Tbk.'s (Jababeka) long-term issuer default rating to B from B+.

The outlook is stable.

Fitch also said it downgraded Jababeka's national long-term rating to A-(idn) from A(idn).

The downgrades reflect a view that Jababeka's credit profile has weakened relative to other similarly rated developers, Fitch said.

This view also considers expectations that Jababeka's property presales will continue to weaken and are unlikely to recover to historical levels, the agency said.

This is primarily due to intensifying competition among industrial and residential property companies in the Cikarang area, Fitch said.

Jababeka also has not made significant progress in the discussion on electricity tariffs in its power purchase agreement with state electricity company, PT Perusahaan Listrik Negara (Persero), the agency noted, and revenue from its power plant also has fallen.

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