Fitch rates Lippo Karawaci notes BB-

Fitch Ratings said it assigned a final BB- rating PT Lippo Karawaci Tbk.'s $100 million 7% notes due 2019 and $273.3 million 6 1/8% notes due 2020.

The new notes, issued by Theta Capital Pte. Ltd., are guaranteed by Lippo Karawacki.

The final rating is in line with the expected rating assigned in October, Fitch said.

The $100 million bonds are issued as a tap to the existing $150 million 7% notes due 2019, while the 2020 new notes will be exchanged for the existing $395.6 million notes due 2015 originally issued by Sigma Capital Pte. Ltd., the agency said.

The proceeds from the tap issue will be used to fund capital expenditure and for general corporate purposes.

Fitch said the incremental debt will not impair Lippo Karawaci's current financial profile, which is supported by Indonesia's favorable long-term demand for residential properties and health care services, a continued strong recurring income base and Lippo Karawaci's demonstrated track record in these businesses.

A high proportion of recurring income from health care, retail malls and hospitality helps mitigate the impact of volatile income from property development and allows the company to maintain a sound financial profile, the agency said.

The ratings also reflect its well-distributed debt maturity profile, Fitch added.

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