Moody's Investors Service revised its outlook on PT Lippo Karawaci to negative from stable and affirmed its B1 corporate family rating on the company.
Moody's Vice President and Senior Analyst Jacintha Poh attributed the negative outlook to a rise in the company's execution and financing risk, which is expected to weaken its debt leverage and interest coverage ratios.
The rating agency added that the company's diversified business profile supports its B1 rating, which does not incorporate structural subordination as most of its liabilities are at the holding company level.
PT Lippo Karawaci has no near-term refinancing risk, Moody's said in a release, noting that its next major debt maturity is in 2022.
