Fitch affirms Lippo Karawaci

Fitch Ratings said it affirmed PT Lippo Karawaci Tbk.’s long-term foreign- and local-currency issuer default ratings at BB- with a stable outlook.

The agency has also affirmed Lippo’s national long-term rating at A+(idn) with a stable outlook.

Fitch said Lippo’s ratings reflect its strong market position and its demonstrated track record as a property developer in Indonesia. The ratings also consider its strong recurring cash flows generated by its portfolio of owned and/or managed health care, retail and hospitality assets, its fee-based income, and dividends from the real estate investment trusts that it manages.

Lippo has strong access to U.S. dollar bond markets, which it has used to stagger its debt maturities, minimizing refinancing risk, the agency said.

Fitch said Lippo’s ratings also reflect its smaller operating scale compared with higher-rated international peers, as well as its aggressive medium-term expansion plan, which is likely to keep leverage high.

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