Press Release
Moody’s Changes Lippo Karawaci’s Ratings Outlook To Stable; S&P Places Rating On CreditWatch Positive
15 March 2019

Jakarta, 15 March 2019 - PT Lippo Karawaci Tbk (“LPKR” or the “Company”), Indonesia’s leading integrated real estate developer, today announced that Moody’s Investors Service (“Moody’s”) has changed LPKR’s ratings outlook to ‘Stable’ from ‘Negative’, and affirmed the Company’s B3 corporate family rating, while S&P Global Ratings (“S&P”) has placed its ‘CCC+’ long-term issuer credit rating on CreditWatch with positive implications.  

The change in Moody’s ratings outlook reflects the rating agency’s expectation that LPKR will have sufficient cash to fund its operating needs and service its debt obligations up to end 2020. Moody’s believes that LPKR’s proposed underwritten rights issue demonstrates a strong commitment from the Riady family to support debt reduction efforts and complete existing projects under construction.  

Moody’s also affirmed the B3 backed senior unsecured rating of the bonds issued by Theta Capital Pte. Ltd., a wholly-owned subsidiary of LPKR.  

Meanwhile, S&P believes that the funding programme will help improve the Company’s financial position by reducing debt, and funding future growth in its property business. S&P plans to resolve the CreditWatch upon completion of LPKR’s proposed rights issue, which could result in the rating being raised by one or two notches. 

Mr. John Riady, CEO of LPKR, said, “The positive revisions by Moody’s and S&P validate the robustness of our funding programme, which will strengthen our balance sheet, improve our liquidity and allow us to continue investing in key projects. Moving forward, we will focus on applying a disciplined approach to capital management, in order to drive profitability and sustainable growth of our real estate platform.” 


About PT Lippo Karawaci Tbk (www.lippokarawaci.co.id

Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of US$3.4bn as at 31 December 2018.  Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.  

Present in 35 cities, we are Indonesia’s leading property developer with 1,297 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 54.4% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar.  

LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 35 state-of-the-art-hospitals across 27 cities nationwide – 12 hospitals in Greater Jakarta, 23 across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara, supported by over 2,900 specialists and general practitioners and over 10,000 nurses and support staff. 

LPKR also has two listed REITs in Singapore, namely First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust with US$1.0bn and US$1.4bn of assets under management respectively, as at 31 December 2018. 


For more information please contact: 

PT LIPPO KARAWACI TBK 

Investor Relations: 
William Wijaya Utama Senior Manager 
william.utama@lippokarawaci.co.id 
Mobile: +62818138688 

Corporate Communications: 
Danang Kemayan Jati 
Vice President, Head of Corporate Communication 
DanangJ@lippokarawaci.co.id 
Mobile: +628557801299 

COGNITO COMMUNICATIONS 

Agus Hermawan
Associate Director
agus@cognito.co.id
Tel: +6221 739 9928  
Mobile: +62 811 850 102  

Disclaimer 

This press release is not for distribution in the United States. This press release and the information contained herein is not an offer to sell securities in the United States.  Securities may not be offered or sold in the United States or to, or for the account or benefit of U.S. person (as such term in defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)) absent registration pursuant to the Securities Act, or an exemption from registration.  Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the issuer and management, as well as financial statements. No money, securities or other consideration is being solicited by this press release or the information contained herein and, if sent in response to this press release or the information contained herein, will not be accepted. 

This press release contains forward-looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import.  By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for LPKR’s developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; LPKR’s ability to be and remain competitive; LPKR’s financial condition, business strategy as well as the plans and objectives of LPKR’s management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although LPKR believes that the expectations of its management as reflected by such forward-looking statements are reasonable based on information currently available to LPKR, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, 

these statements speak only as of the date hereof, and LPKR undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.   

This press release does not constitute as a public offering in Indonesia under Law Number 8 of 1995 regarding Capital Markets and its implementing regulations (the “Indonesian Capital Markets Law”). This press release and the securities described herein will not be and may not be offered within the territory of the Republic of Indonesia or to Indonesian nationals, in a manner which constitutes a public offering under the Indonesian Capital Markets Law.