Fitch puts Lippo Karawaci on positive watch

Fitch Ratings said it placed PT Lippo Karawaci Tbk.'s long-term foreign- and local-currency issuer default ratings of CCC+ on Rating Watch positive.

Fitch also said it placed Lippo's national long-term rating of BB-(idn) on positive watch.

The positive watch follows news of the company's $730 million rights issue that will be completed by year-end June 2019 and an asset-disposal plan of $280 million to be completed in the second half of 2019, the agency said.

Fitch said it believes the new equity will provide Lippo with substantial liquidity until at least 2020 such that the company has the financial capacity to execute its turnaround plan while meeting interest costs and near-term debt maturities.

The agency said it will resolve the positive watch when the rights issue is completed and may upgrade Lippo's issuer default ratings by one notch to B- and national long-term rating by up to two notches to BB+(idn).

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