Moody’s cuts Lippo Karawaci, bonds

Moody's Investors Service said it downgraded Lippo Karawaci Tbk.’s corporate family rating and the senior unsecured rating of the bonds issued by Theta Capital Pte. Ltd., guaranteed by and a wholly owned subsidiary of Lippo Karawaci, to B1 from Ba3.

The outlook was changed to stable from negative.

"The downgrades reflect the weak operating performance of Lippo Karawaci's property development business, led by continued delays in its new project launches and uncertainty over the completion of its targeted asset sales in 2017. Consequently, we expect the developer's financial profile will remain outside the parameters of its Ba3 corporate family rating over at least next 12-18 months," Moody's vice president and senior analyst Jacintha Poh said in a news release.

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