Fitch rates Lippo Karawaci B+

Fitch Ratings said it affirmed PT Lippo Karawaci Tbk's long-term foreign- and local-currency issuer default ratings at B+ and upgraded its national long-term rating to A(idn) from BBB+(idn).

Fitch also said it assigned a senior unsecured rating of B+ and affirmed the $395 million senior unsecured notes due 2015 issued by Sigma Capital Pte. Ltd., and guaranteed by Lippo Karawaci, at B+ with a recovery rating of RR4.

The outlook is stable.

The ratings reflect the company's position as one of Indonesia's leading property developers, the increasing share of strong recurring revenue streams and its sound liquidity, Fitch said.

Earnings from healthcare, hospitality and infrastructure and asset management to some extent mitigate the volatility associated with property development and now account for nearly 50% of the company's earnings, the agency said.

These strengths also drive the upgrade of the national rating, Fitch said.

The ratings are constrained by the cyclicality of its exposure to property development, which still accounts for about 50% of earnings, the agency said.

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