The rating action reflects heightened refinancing risk on LPKR's US$237 million unsecured notes due on 22 January 2025. This follows LPKR's confirmation that it will prioritise the refinancing efforts of its Singapore-based affiliate Lippo Malls Indonesian Retail Trust (LMIRT, CCC-) for US$250 million unsecured notes due in June 2024 by introducing the trust to LPKR's own banks.
On Nov 20, Fitch Ratings announced it has downgraded PT Lippo Karawaci Tbk's (LPKR) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'CCC+' from 'B-'. Fitch has also downgraded the ratings on LPKR's US dollar notes due January 2025 and October 2026 to 'CCC+' from 'B-' with a Recovery Rating of 'RR4'.
Fitch Ratings Indonesia has simultaneously downgraded LPKR's National Long-Term Rating to 'B+(idn)' from 'BBB-(idn)'. The Outlook is Negative.
