Fitch turns Alam Sutera view to negative

Fitch Ratings said it revised the outlook on PT Alam Sutera Realty Tbk. (ASRI) to negative from stable and affirmed its long-term issuer default rating at B-.

“The negative outlook reflects the underperformance in ASRI's presales, which, if sustained, could weaken liquidity and raise financing risk on the company's $251 million secured notes due November 2025. We expect a slow recovery in presales, supported by the company's marketing efforts and the value-added-tax (VAT) rebate announced last year, which is effective through to end-2024,” Fitch said in a press release.

The agency said it expects presales, excluding land sales to developers, to stay below Rp 2 trillion over the next 12 months. This is a level below which Fitch said it may consider negative rating action. However, it forecasts presales to recover to Rp 2.1 trillion in 2025 and Rp 2.2 trillion in 2026.

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