S&P lifts Lippo Karawaci

Standard & Poor's said it raised the long-term corporate credit rating on PT Lippo Karawaci Tbk to B+ from B, along with the rating on its senior unsecured notes issued by Sigma Capital Pte. Ltd. and Lippo Karawaci Finance BV to B+ from B. Lippo Karawaci is the guarantor of these notes.

The outlook is stable.

The upgrade reflects a much improved operating environment, with strong sales of residential homes and better contribution from Lippo Karawaci's healthcare and hospitality businesses, which are more stable, S&P said.

Those factors mitigate the cyclicality and execution risks inherent in the property development business, the agency said.

The stable outlook reflects an expectation that the company's improved operating results are sustainable at least through 2011, supported by favorable industry conditions, S&P added.

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