Moody’s stabilizes Lippo Karawaci view

Moody’s Investors Service said it revised its outlook for Lippo Karawaci Tbk. to stable from ratings under review and confirmed the B3 ratings on the company and its notes issued through wholly owned subsidiary Theta Capital Pte Ltd. Lippo Karawaci and some of its subsidiaries guarantee the notes.

This rating action concludes the review for downgrade started on Jan. 12, the agency said.

On Friday, the company reported it had received valid tenders of $116.262 million and $108.466 million of its 2025 and 2026 U.S. dollar notes, respectively, following the expiration of the tender offer exercise. The company also received the needed consent from the noteholders to waive and amend some terms under the notes.

"The transaction is credit positive for the company as it would partly address its large debt maturity wall over 2025 and 2026, result in some interest savings annually and demonstrate the company's access to onshore funding. Nonetheless, we note that the transaction is negative for noteholders given the covenant waivers and economic loss on the notes tendered," said Rachel Chua, a Moody's vice president and senior analyst, in a press release.

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