S&P rates Metropolis notes B+

Standard & Poor's said it assigned a B+ long-term corporate credit rating to PT Metropolis Propertindo Utama, along with an axBB long-term Asean regional scale rating.

The agency also said it assigned a B+ long-term issue rating to a proposed issue of senior secured notes by Khatulistiwa Development Pte. Ltd. Metropolis guarantees the notes.

The outlook is stable.

The ratings reflect the company's volatile and uneven cash flows and significant capital expenditure needs for acquisition and construction of projects, S&P said.

Its cash-conversion cycle is long, the agency said, and it has a large exposure to a single customer group.

The ratings also consider the company's diversified exposure across many different asset types, geographical spread across Indonesia and close relationship with the largest property developer in Indonesia, S&P said.

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