The Icon Towers project under Duta Anggada Realty Tbk (DART) has the potential to
suppress the company’s credit profile. The project financed with bank loans
requires substantial annual installments while cash flow from pre-sale projects is
not available until 2018.
Yogie Surya Perdana, Analyst of Pemeringkat Efek Indonesia (Pefindo)/ Indonesia’s
Rating Agency, said Pefindo reaffirmed idBBB+ rating for DART and shelf registered
bond I in 2013. However, the company’s outlook was revised from stable to negative.
“We anticipate the weakening of credit profile,” said Yogie.
Pefindo also anticipates pressure on liquidity due to mismatch on cash flows
related to credit facilities on the project. The Icon Towers project received
funding from Bank Maybank Indonesia Tbk (BNII).
The idBBB+ rating indicates DART has sufficient ability to fulfill its financial
commitments. This rating shows the quality of a good corporate asset and a stable
recurring income of the investment property. However, the company’s ability can be
affected by the adverse changes in economic conditions.
The company’s rating will be lowered if DART cannot refinance BNII loan which
requires annual installment of IDR 160 billion to IDR 240 billion. Another factor
is if the company fails to sell the La Maison en bloc project which is expected to
contribute IDR 500 billion to the company’s revenue.
The outlook can be revised steadily if DART refinances loan or successfully selling
La Maison en bloc project that will ease the company’s liquidity. (*)