Moody's: Lippo Karawaci unchanged

Moody's Investors Service said it sees no immediate impact on the B1 corporate family rating and senior bond rating of PT Lippo Karawaci Tbk. following news that the company proposes to amend some covenants of its dollar-denominated notes due 2015.

The outlook remains stable.

The proposed amendments will allow the company to invest in permitted businesses aggregating to no more than $375 million before Nov. 30, 2011, with proceeds from any rights issues or any issuance of the company's shares, the agency said. The company also can use any of the remaining proceeds to pay dividends of up to $15 million per year.

The new amendments also will allow the company to raise debt to refinance its existing debt, Moody's said.

The agency said it understands that the company will invest in areas that are consistent with its business strategy, thereby mitigating the associated execution risk.

But the ratings and outlook will be reassessed if the company invests in projects that deviate from its original plan, Moody's said.

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