One Downgrade, One Negative Outlook
On the rating action front, Pemeringkat Efek Indonesia (Pefindo) has lowered Duta Anggada Realty, Tbk (DART IJ) rating to idBBB+/Sta from idA-/Sta. The downgrade was driven by weakening financial condition due to lower revenue projection amid higher debt level. Lower revenue projection is expected due to weak sales performance from La Mansion project and late operation of hotel in Bali. Elsewhere, Pefindo also lowered the outlook on PT Len Industri (Persero) a to negative from stable due to deterioration in credit metric, particularly capital structure, cash flow measures, due to higher than projected debt level without being compensated with higher revenue realization. Meanwhile, there also may be a potential delay in government project that could lower company’s revenue realization, given the fact that more than 80% of its revenue coming from government related program.
