Moody’s assigns B3 to Lippo Karawaci notes

Moody’s Investors Service said it assigned a backed senior unsecured rating of B3 to the proposed senior unsecured notes to be issued by Theta Capital Pte. Ltd. The proposed notes are guaranteed by Lippo Karawaci Tbk. and some of its subsidiaries, and rank pari passu with its 2022 and 2026 notes. The outlook is stable.

Lippo Karawaci will use the proceeds to partially redeem the 2022 notes and for general corporate purposes.

“The proposed notes are not exposed to either legal or structural subordination risk, therefore the rating is aligned with Lippo Karawaci’s B3 corporate family rating,” said Jacintha Poh, a Moody’s vice president and senior credit officer, in a press release.

“We view Lippo Karawaci’s plan to refinance its 2022 notes ahead of the notes’ maturity, with a mix of US dollar debt and Indonesian rupiah loans as credit positive,” adds Poh. “By planning ahead, Lippo Karawaci is demonstrating proactive capital management and reducing its exposure to foreign exchange risk.”

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