The ratings agency added that uncertainty had been worsened by bribery allegations surrounding its Meikarta flagship development in Cikarang, West Java, a US$21 billion ($29 billion) urban project outside Jakarta developed by Lippo subsidiary Mahkota Sentosa Utama.
SINGAPORE (Nov 20): Indonesian property developer Lippo Karawaci has expressed regret over a credit downgrade by Fitch Ratings, saying its IDR 6 trillion ($564 million) divestment plan to strengthen capital was progressing smoothly.
The global credit rating agency on Friday downgraded Lippo Karawaci's long-term foreign and local currency issuer default ratings by two notches as well as subsidiary Theta Capital's USD bonds to CCC+ from B, citing liquidity risks as a result of uncertainty over asset sales, on which Lippo has been increasingly reliant to service debt obligations.
