JAKARTA. Pemeringkat Efek Indonesia (Pefindo) revised the outlook for the Medium Term Note (MTN) and Bonds I/2016 issued by PT PP Properti Tbk (PPRO), from Stable to Negative.
Martin Pandiangan and Emanuel Paco Tan, analysts at Pefindo, said that at present, PPRO has fairly high leverage. According to the company's financial statements, the company's debt ratio is now at the level of 14.3 times. In 2018, the company's debt consolidation ratio was 36.19% lower at 10.5 times.
"Outlook can be revised to Stable if the company improves its operating cash cycle and financial leverage significantly and sustainably," Pefindo explained in an official statement received at idnfinancials.com.
Pefindo added, the revision was also done to anticipate the company's operating cash flow, which is burdened by the cash cycle. Moreover, the company needs more debt to finance its capital expenditure. (KR/AR)