JAKARTA. Fitch Ratings has downgraded PT PP Properti Tbk's. (PPRO) long-term rating from BBB- (idn) to CCC (idn) because the company faces the risk of refinancing its maturing debt securities, which have a total value of Rp 1.2 trillion.
As quoted from Bisnis on Friday (14/8), according to Fitch, the downgrade is caused by the risk of refinancing in the near future. PPRO must pay off its MTNs that will mature on August-November 2020.
The rating agency also downgraded its rating for PPRO's two debt securities, namely bonds with a total value of Rp 2 trillion and medium term notes (MTN) with a total value of Rp 600 billion. The rating was downgraded from BBB- to CCC.
The financial risks mentioned by Fitch are related to PP Properti's tight liquidity position and the deteriorating condition of the property market during the pandemic. (AM/AR)