JAKARTA. Fitch Ratings has again downgraded the long-term Issuer Default Rating (IDR) of PT Modernland Realty Tbk (MDLN) from “CC” to “C”, after the company failed to pay its bond coupons on 31 August 2020.
On the same occasion, Fitch also gave a “CC” rating with a “RR4” Recovery Rating level, on the two debt securities of MDLN's subsidiary, JGC Ventures Pte. Ltd. The principal values of the two debt securities are US$ 150 million and US$ 240 million, and they will mature in 2021 and 2024 respectively.
"Fitch estimates that MDLN does not have sufficient cash to pay its debts and will rely on external funding to pay its debt coupons," explained Fitch in its official report.
For information, the “C” rating indicates that MDLN has begun to reach default or the company is in a stagnant condition. Meanwhile, "RD" means the company is unable to overcome defaults and is approaching bankruptcy.
According to idnfinancials.com data, MDLN only had cash of Rp 180.29 billion at the end of the first quarter of 2020, 78.28% lower than its record at the end of December 2019, which was Rp 554.86 billion. (KR/AR)