Fitch Ratings has upgraded Indonesia-based developer PT Pakuwon Jati Tbk's (PWON) Long-Term Issuer Default Rating to 'BB' from 'BB-'. The Outlook is Stable. At the same time, the agency has upgraded PWON's senior unsecured rating and the rating on its USD250 million notes due 2024 issued by its wholly owned subsidiary, Pakuwon Prima Pte Ltd, to 'BB' from 'BB-'. The upgrade follows PWON achieving sustained positive cash flow from operations, recurring EBITDA growth to above USD120 million, and sustained recurring EBITDA/net interest expense above 3.0x, the level at which Fitch had set for positive rating action. Fitch believes PWON's risk profile is more closely aligned towards an investment-property company than a developer. We think PWON's development business is not a drag on its overall risk profile as the company has a recent track record of prudent project execution such as a positive operating cash flow position and low leverag...
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