S&P lowers Lippo Karawaci

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

The agency also said it lowered the rating on Lippo's outstanding guaranteed senior unsecured notes to B from B+.

These notes were issued by Theta Capital Pte Ltd.

The agency said it would remove all of the ratings from CreditWatch, where they were placed with negative implications in August.

The outlook is stable.

The downgrades reflect Lippo's eroded interest servicing capacity, financial flexibility and liquidity amid aggressive growth aspirations and softer operating conditions, S&P said.

The subdued property market in Indonesia in the past three years has affected Lippo's historically positive revenue and profit growth trajectory, the agency said.

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