S&P rates Lippo Karawaci notes B

Standard & Poor's said it assigned a B issue rating to the proposed $350 million senior unsecured notes due 2015 to be issued by PT Lippo Karawaci Tbk.'s fully owned special-purpose vehicle Sigma Capital Pte. Ltd. The notes will be issued in exchange for any or all of the $250 million senior unsecured notes due 2011 issued by Lippo Karawaci Finance BV. Both the notes are unconditionally and irrevocably guaranteed by Lippo Karawaci.

If the proposed notes are issued successfully, they would allow Lippo Karawaci to ease its debt maturity profile, S&P said.

This is because the proposed notes are due in 2015 and the amount raised in excess of the 2011 notes will be used to fund Lippo Karawaci's capital investments, particularly in further developing the company's health-care business, the agency said.

S&P also said it expects the company to maintain its credit protection metrics.

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