Moody's eyes Lippo Karawaci for haircut

Moody's Investors Service said it placed Lippo Karawaci Tbk.'s B3 corporate family rating and the B3 backed senior unsecured rating of the notes issued by Theta Capital Pte. Ltd., a wholly-owned subsidiary of Lippo Karawaci, on review for downgrade. Lippo Karawaci and some of its subsidiaries guarantee the notes. The outlook on all ratings was revised to ratings under review from stable.

On Wednesday, Lippo Karawaci announced a tender offer to buy back its $405 million of dollar notes due January 2025 and its $417 million of dollar notes due October 2026, with the offer capped at all or part of the net proceeds up to Rp 6 trillion, about $387 million, term loan. Lippo Karawaci is also seeking noteholders' consent to waive and amend some terms under the notes.

"The review will focus on the success of the tender offer, which will require noteholders' consent on the proposed revised terms for the company to raise fresh debt to buy back the U.S. dollar notes. At this point, it remains unclear as to whether the tender offer will be successfully completed," said Rachel Chua, a Moody's vice president and senior analyst, in a press release.

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