Moody's: Lippo Karawaci unchanged

Moody's Investors Service said it sees no immediate rating impact on the B1 corporate family rating of PT Lippo Karawaci Tbk. and the B1 senior unsecured ratings for the dollar-denominated bonds it guarantees from a proposed rights issue to raise about $250 million.

The outlook remains stable.

Moody's noted that the rights issue is subject to regulatory and shareholders' approvals and is slated to conclude by the end of 2010.

The rights issue will provide the company with new capital to support its planned expansion in the next two or three years, Moody's said. It also will reduce the company's reliance on debt funding and lower the projected adjusted debt/capitalization to about 40% in the next one to two years from 46.5% as of September, the agency said.

The ratings are constrained by the company's material exposure to industry cyclicality and the high development and execution risks associated with its core property development business, Moody's said.

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