JAKARTA. The Indonesian Securities Rating Agency (Pefindo) has lowered the rating of PT PP Properti Tbk (PPRO) on Wednesday (16/10) to "idSD" (Selective Default) due to the status of default on its obligations.

Apart from that, Pefindo also lowered the rating of Shelf Registration Bonds II Phase IV to "idD". Previously, this debt security received an "idBB-" rating.

The downgrade in ranking, according to Pefindo's official statement, follows a court decision which stipulates PKPU (Postponement of Debt Payment Obligation) status until November 21, 2024. "With temporary PKPU status, PPRO is in debt standstill and is not permitted to make payments to all lenders, including the payment of Continuous Bond II Phase IV coupons which mature on October 14, 2024," said Pefindo.

Not only that, Pefindo also lowered the ratings of PPRO's Shelf Registration Bonds II Phase I and Phase III to "idCCC" from previously "idBB-". This decrease, said Pefindo, reflects the very high level of possibility that PPRO will not fulfill its obligation to pay the bond coupon when it matures. (KR/LM)