Moody's sees no change for Lippo Karawaci

Moody's Investors Service said it sees no immediate impact on the B1 corporate family rating of PT Lippo Karawaci Tbk, along with the B1 senior unsecured ratings of the dollar-denominated bonds guaranteed by Lippo Karawaci, following its proposed acquisitions announcement.

The outlook remains stable.

Lippo Karawaci plans to acquire a 27.2% stake in Lippo-Mapletree Indonesia Retail Trust and a 40% interest in its asset manager, Lippo Mapletree Indonesia Retail Trust Management Ltd., Moody's said.

The acquisitions will not materially affect the company's financial and liquidity profiles, as they are predominantly funded by equity, the agency said.

At the same time, the transaction will increase the contribution of recurring income to the company's revenue, partly mitigating the business and execution risks inherent in its property development segment, Moody's added.

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