Fitch rates Lippo Karawaci

Fitch Ratings said it assigned long-term foreign currency and local currency issuer default ratings of B+ to PT Lippo Karawaci Tbk (LK).

The outlook is stable.

Fitch said it has also assigned a rating of B+ and a recovery rating of RR4 to the $250 million unsecured floating-rate notes due 2011 issued by Lippo Karawaci Finance BV and guaranteed by LK.

LK's ratings reflect its exposure to the cyclical real estate businesses, which contribute to nearly two thirds of the company's revenue and profits, Fitch noted.

LK's ratings are supported by its 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.

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