Fitch Ratings downgraded its long-term issuer default rating on Indonesia-based developer PT Lippo Karawaci to B+ from BB- and affirmed its national long-term rating at A+(idn), with stable outlooks.

The rating agency attributed the downgrade to the company's proposed sale of a substantial stake in its MEIKARTA project, which Fitch expects will significantly reduce the company's cash flow.

The affirmation of the national long-term rating is based on the expectation that the company's credit profile will remain stronger than those of its local competitors, thanks to the solid recurring cash flow from its diversified commercial property portfolio.