Moody’s changes Lippo Karawaci view

Moody's Investors Service said it affirmed the B3 corporate family rating of Lippo Karawaci Tbk. and affirmed the B3 backed senior rating of the bonds issued by Theta Capital Pte. Ltd., a wholly owned subsidiary of Lippo Karawaci.

The bonds are guaranteed by Lippo Karawaci and some of its subsidiaries.

At the same time, Moody's changed the outlook to stable from negative.

“The change in Lippo Karawaci's ratings outlook to stable from negative reflects our expectation that liquidity at the holding company level will improve following its rights issue, such that Lippo Karawaci will have sufficient cash to fund its operating cash needs and service its debt obligations over the next 12-18 months,” Jacintha Poh, Moody's vice president and senior credit officer, said in a news release.

“The underwritten rights issue demonstrates the strong commitment from the Riady family to support Lippo Karawaci's effort to reduce debt and complete existing projects under construction.”

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