S&P revises Lippo Karawaci view to negative

S&P said it revised the outlook on PT Lippo Karawaci Tbk. to negative from stable, while affirming its B- issuer credit rating on the company and the B- issue rating on the outstanding notes.

The outlook revision reflects the steady erosion in the company's liquidity since the July rights issue, the limited visibility on the company's liquidity and the sustainability of its balance sheet beyond the first half of 2021.

“We estimate the company's cash balance declined to slightly below Rp 3 trillion at the holding company level as of Dec. 31, 2019. That compares with our estimate of about Rp 4.6 trillion as of Sept. 30, 2019,” S&P said in a press release.

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