Moody's trims Lippo Malls Indonesia

Moody's Investors Service said it lowered the corporate family rating of Lippo Malls Indonesia Retail Trust to B3 from B2 and the backed senior unsecured rating on the bonds issued by LMIRT Capital Pte. Ltd., a wholly-owned subsidiary of LMIRT, to B3 from B2. A trustee of LMIRT guarantees the bonds.

"The downgrade reflects LMIRT's rising refinancing pressure on the back of its S$135 million of bank loan maturities in November 2023, the S$82.5 million of bank loans due in January 2024 and the $250 million U.S. dollar bond that will mature in June 2024 amid a tight funding environment," said Rachel Chua, a Moody's vice president, senior analyst and lead analyst for LMIRT, in a press release.

"The downgrade also reflects a further weakening of the company's interest cover ratio as interest rate hikes continue, as well as our expectations that the weakening Indonesian rupiah relative to the Singapore dollar will likely drive its regulatory leverage ratio beyond the 45% threshold over the next few quarters," Chua added.

The outlook remains negative.

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