Fitch rates Lippo Karawaci BBB+(idn)

Fitch Ratings said it assigned a national long-term rating of BBB+(idn) to PT Lippo Karawaci Tbk.

The outlook is stable.

The company's rating reflects its exposure to the cyclical real estate businesses, which contribute nearly two-thirds of the company's revenue and profits, Fitch said.

The ratings are supported by the company's position as one of the leading property developers in Indonesia with a diversified revenue base and a marketing strategy that appears to have been successful within the Indonesian environment, the agency said. The company improved its debt-to-EBITDA ratio to 2.2x in 2005 from 5.4x in 2004.

The stable outlook reflects Fitch's expectation that the company will continue to generate positive operating cash flows from its current project pipeline, thereby maintaining its existing financial profile.

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