Fitch: Lippo Karawaci unchanged

Fitch Ratings said the bondholder consent solicitation process launched by PT Lippo Karawaci Tbk for the $270.6 million notes due 2015 issued by Sigma Capital Pte. Ltd., and guaranteed by Lippo Karawaci, does not immediately affect the notes' issue rating of B+ or its B+ issuer default rating.

The outlook is stable.

The key amendment proposed by the company is to allow it the ability to invest up to $375 million in permitted business lines from proceeds of right issues and/or any other equity issuance prior to Nov. 30, 2011, Fitch said.

The ratings impact of this amendment can only be assessed once there is greater clarity on Lippo Karawaci's future equity raising and investment plans, the agency said.

Fitch said it takes comfort from the fact that any new investments will be entirely equity funded and in its core businesses.

The ratings are supported by its position as one of Indonesia's leading property developers with a diversified revenue base, comfortable liquidity position and significant cash flow from recurring business, the agency said.

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