S&P downgrades Lippo Karawaci

S&P said it lowered the long-term issuer credit rating on PT Lippo Karawaci Tbk. to B- from B.

The agency also said it lowered the rating on Lippo's outstanding guaranteed senior unsecured notes to B- from B.

These notes were issued by special purpose vehicle Theta Capital Pte Ltd.

The outlook is negative.

The downgrades reflect a view that Lippo needs to dispose of assets to strengthen its liquidity, S&P said.

This is because the agency said it expects modest operating cash flows, high financial charges, maturing debt and depleting cash balances over the next six months.

S&P also said it estimates liquidity at the holding company will deplete in the next six months, barring substantial and timely asset sales.

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