Fitch rates Lippo Karawaci notes B+

Fitch Ratings said it affirmed PT Lippo Karawaci Tbk.'s long-term foreign-currency and local-currency issuer default ratings at B+, national long-term rating at BBB+(idn) and the B+ rating and recovery rating of RR4 on the $250 million senior unsecured notes due 2011 issued by Lippo Karawaci Finance BV and guaranteed by Lippo Karawaci.

The agency also assigned an expected rating of B+ and an expected recovery rating of RR4 to the proposed $350 million notes due 2015 to be issued by Sigma Capital Pte. Ltd. and guaranteed by Lippo Karawaci. The ratings are contingent upon receipt of final documents.

The outlook is stable.

The proceeds will be used for general corporate purposes.

While the proposed issue will increase the company's gross debt level marginally, Fitch said its debt maturity profile would improve substantially, with the majority of its debt maturing in 2015 as compared to 2011 currently.

The ratings reflect the company's position as one of Indonesia's leading property developers with a diversified revenue base, comfortable liquidity position and significant cash flow from recurring businesses, the agency said.

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