Moody’s changes Alam Sutera view

Moody's Investors Service said it affirmed the B2 corporate family rating of Alam Sutera Realty Tbk. (PT) and affirmed the B2 backed senior unsecured rating of the 2020 notes and 2022 notes issued by Alam Synergy Pte. Ltd.

The notes are guaranteed by Alam Sutera and most of its subsidiaries.

Moody's also changed the outlook to negative from stable.

The agency said the negative outlook reflects an expectation that the company's liquidity will weaken significantly over the next 12 to 18 months, owing to the maturity of its $235 million notes in March 2020.

"Alam Sutera faces impending refinancing risk because the company does not have any concrete plans to address the maturity of its 2020 notes," Jacintha Poh, Moody's vice president and senior analyst, said in a news release.

"Furthermore, the current market conditions – namely a weaker Indonesian rupiah and higher interest rates – will prove challenging for Alam Sutera's refinancing efforts.”

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