Fitch rates Summarecon Agung bond BBB

Fitch Ratings said it has assigned a national long-term issuer rating of BBB to Indonesia-based PT Summarecon Agung Tbk. The outlook is stable.

Fitch said it has also assigned an expected rating of BBB to the bank's proposed Rp 300 billion five-year bond due 2011.

Summarecon's ratings reflect its strong franchise in township developments, reflected in the success of its projects in Kelapa Gading and Serpong. The integrated township in Kelapa Gading is one of the largest and most complete townships in Greater Jakarta, the agency said.

Summarecon's rating is constrained by its moderate size of operations and its exposure to property development, which tends to have a high level of cyclicality and close correlation to interest rates and economic cycles, the agency noted.

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