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PPRO Remains Committed To Debt To Fall Tempo
Jakarta, 18 August 2020 –Property developer with the leading middle market segment in Indonesia, PT PP Properti Tbk (ticker code: PPRO) confirmed the results of the annual rating issued by PT Pemeringkat Efek Indonesia (PEFINDO) and PT Fitch Ratings Indonesia (FITCH).
It is known that on August 11, 2020 PEFINDO has issued PPRO’s annual rating results for several of its instruments, namely Bond I Series B 2016, Medium Term Notes (MTN) VI-X 2017 PP Properti Tbk remains in the BBB- (Triple B Minus) rating.
Taufik Hidayat, President Director of PPRO said “PPRO remains committed to maturing debts and other obligations”. It is known that the MTN debt that will mature in August until the end of this year is IDR 1.2 trillion. “MTN payments will be paid according to a predetermined time. Currently, PPRO has implemented several strategies to increase liquidity, including conducting regular bulk sales, divesting land, divesting shares of subsidiaries and divesting malls, ”added Taufik.
To anticipate the possibility of a cash flow miss-match that occurred due to the current Covid-19 pandemic situation, PPRO was backed up by PTPP as the Parent Company by providing loans to PPRO in the form of shareholder loans, one of which was realized in July 2020 and will be backed up to company strategies. has been realized.
Based on the press release issued by PEFINDO, PPRO has sufficient capacity compared to other Indonesian obligors to meet its long-term financial commitments, but is more likely to be affected by adverse changes in economic conditions.
Meanwhile on August 14, 2020, FITCH has issued PPRO’s annual rating results for several of its instruments, namely Medium Term Notes (MTN) XI-XII 2018 and Sustainable Bonds I Phase I-III 2018-2019, Sustainable Bonds 2 Phase I 2020 PP Properti, lowered from BBB- (Triple B Minus) rank to CCC (Triple C).
In the press release issued by FITCH, PPRO has a high risk of refinancing and weakening pre-sales due to the Covid-19 pandemic. In line with PEFINDO, PPRO has a strong operational and strategic relationship with its parent company PTPP and is one of the largest profitability contributors compared to PTPP’s other subsidiaries. FITCH takes a ‘Stronger Parent Profile’ approach and provides one notch lift from the SCP PPRO. FITCH can raise the PPRO rating if the Company can significantly increase its liquidity so that it can pay debts that will mature in the near future.
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About PT PP Properti Tbk:
PT PP Properti Tbk (ticker code: PPRO) is a leading state-owned company of PT PP (Persero) Tbk (ticker code: PTPP). The company was founded in December 2013, but has had experience since 1991 and the Company has now become a listing company on the Indonesia Stock Exchange since May 2015. In 2017, the Company split the value of shares from Rp. 100 (one hundred rupiah) to Rp. 25 (twenty five rupiah). The Company has 3 (three) business segments, namely Residential, Commercial and Hospitality. Since 1991 until now, the Company has developed around 49 projects including 33 Residential, 10 Commercial, and 6 Hospitality.
