Fitch lowers Lippo Malls

Fitch Ratings said it downgraded its ratings on Lippo Malls Indonesia Retail Trust's (LMIRT) and its senior unsecured notes due 2024 and 2026 to CCC from CCC+. The notes’ recovery rating remains RR4. The notes were issued by wholly owned subsidiary, LMIRT Capital Pte. Ltd., and are guaranteed by Perpetual (Asia) Ltd., in its capacity as trustee of LMIRT.

Increasing doubt about LMIRT being able to refinance its S$547 million debt maturing over the next 18 months and trust reporting its hired a financial advisor to explore options for a sustainable capital structure and reduce leverage, the agency said.

“We believe LMIRT may be able to access secured debt from banks to refinance its term loans and U.S.-dollar notes. If the trust is unsuccessful in transitioning to a secured-capital structure, it could pursue a debt restructuring, which may include an extension in the maturity of its $250 million notes due June 2024,” Fitch said in a statement.

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