S&P: Lippo Karawaci notes B+

S&P said it affirmed the B+ long-term corporate credit rating on PT Lippo Karawaci Tbk.

The agency also said it assigned a B+ long-term issue rating to the proposed senior unsecured notes of up to $420 million that Theta Capital Pte Ltd. will issue.

Lippo will guarantee the notes, S&P said.

The agency also said it affirmed the B+ foreign-currency long-term issue rating on the existing senior unsecured notes issued by Theta Capital and the axBB Asean regional scale rating on Lippo.

The outlook is stable.

Despite weak year-do-date property sales, the company’s interest servicing capacity remains commensurate with the agency’s earlier forecast through 2018, S&P explained.

The company still is able to service its interest payments also despite a potential delay in asset sales and marginally higher debt from its proposed issuance of $420 million in new notes, the agency said.

S&P said it projects Lippo's EBITDA interest coverage to be about 1.8x in 2016.

This level is lower than an earlier forecast of 2x, but above the downgrade trigger of 1.5x on a sustainable basis, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.