S&P Global Ratings placed PT Lippo Karawaci Tbk.'s ratings on CreditWatch with positive implications following the Indonesian property company's announcement of a US$1.01 billion funding program.
Placed under CreditWatch are the rating agency's CCC+ long-term ratings on both the company's credit and on its outstanding guaranteed senior unsecured notes.
S&P Global believes the program's US$730 million rights issuance component will ensure that the developer will have adequate liquidity until Dec. 31, 2020. It also noted that the planned issuance will help PT Lippo Karawaci to lower its debt and provide additional financing for the future growth of the company's property business.
Moreover, S&P Global said PT Lippo Karawaci's agreement with Lippo Malls Indonesia Retail Trust for the sale of the Lippo Mall Puri shopping center in the Puri Indah commercial precinct of West Jakarta, Indonesia, will help bolster the financial and liquidity position of the selling property company.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.