Moody’s might lower Lippo Malls

Moody's Investors Service said it placed the Baa3 issuer rating of Lippo Malls Indonesia Retail Trust (LMIRT) on review for downgrade.

"The review for downgrade was driven by the deteriorating credit quality of key entities within the Lippo group, which contribute around one-third of LMIRT's revenue," Moody's vice president and senior analyst Jacintha Poh said in a news release.

Lippo Malls is closely linked to the Lippo group of companies, due to these companies' roles as sponsor, property pipeline provider, REIT manager, property manager and tenants.

Moody’s said the exposure is credit negative, particularly given the deteriorating credit quality of key entities within the group, namely Lippo Karawaci Tbk. (B1 stable) and Matahari Putra Prima Tbk. (B1 stable), which were both downgraded this year.

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