Fitch assigns Lippo Karawaci notes B+

Fitch Ratings said it assigned Sigma Capital Pte. Ltd.'s proposed up to $130 million of notes due in 2015 an expected B+ rating and an expected RR4 recovery rating.

The notes are to be guaranteed by PT Lippo Karawaci Tbk., which has B+ ratings and a stable outlook.

The proposed notes are part of Lippo Karawaci's 2015 guaranteed senior notes program, which is rated at B+ with a recovery rating of RR4, Fitch said.

The new notes are not expected to affect Lippo Karawaci's total indebtedness as the proceeds are to be used for debt refinancing of its $66.2 million of notes due in March 2011 and bank loans amounting to $49.8 million.

The ratings reflect its position as one of Indonesia's leading property developers with a diversified revenue base, substantial cash generation from recurring sources and its comfortable liquidity position, Fitch said.

The ratings are constrained by the highly cyclical nature of its property development operations, which currently account for about half of its EBITDA, the agency said.

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