S&P puts Lippo Karawaci on positive watch

S&P said it placed its CCC+ long-term issuer credit rating on PT Lippo Karawaci Tbk. and the CCC+ long-term issue rating on the company's outstanding guaranteed senior unsecured notes on CreditWatch with positive implications.

S&P said it plans to resolve the CreditWatch upon completion of a rights issue, which could result in the rating being raised by a notch or two.

“We believe PT Lippo Karawaci Tbk.'s (Lippo's) proposed rights issue and asset sale amounting to US$1 billion will mitigate any liquidity risk until Dec. 31, 2020, help reduce debt, and fund business growth. We believe Lippo's proposed tender offer is opportunistic because we do not believe the failure of the offer will result in a payment default,” S&P said in a news release.

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