Moody’s cuts Lippo Karawaci

Moody's Investors Service said it downgraded the corporate family rating of Lippo Karawaci Tbk to B3 from B2.

The agency also downgraded the backed senior unsecured rating of the bonds issued by Theta Capital Pte. Ltd. to B3 from B2.

The bonds are guaranteed by Lippo Karawaci and some of its subsidiaries.

The outlook is negative.

"The downgrade reflects our expectation that Lippo Karawaci's operating cash flows at the holding company level will weaken further over the next 12-18 months, such that the company's ability to service its debt servicing obligations will be subject to its ability to execute asset sales," Jacintha Poh, Moody's vice president and senior analyst, said in a news release.

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