The rating on Indonesia-based property developer PT Lippo Karawaci Tbk. (Lippo Karawaci) reflects the company's aggressive capital expenditure plans and exposure to volatile cash flows from the cyclical property development business. The company's dominant position in the domestic property market and its strong financial flexibility in respect of good access to equity and capital markets temper the above weaknesses. The rating also reflects our assessment that Lippo Karawaci has a "fair" business risk profile and "aggressive" financial risk profile. The business risk assessment captures the company's diversified business segments with operating performances that are counter-cyclical to each other. Our financial risk assessment incorporates the recent improvement in Lippo Karawaci's performance and credit metrics. It also factors in the company's aggressive...
Companies mentioned in this report are: PT Lippo Karawaci Tbk.
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