Moody’s rates Lippo Malls bond Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Lippo Malls Indonesia Retail Trust (LMIRT).

Moody's also said it assigned a Ba3 backed senior unsecured rating to the bond issued by LMIRT Capital Pte. Ltd., a wholly owned subsidiary of LMIRT.

The bond is guaranteed by the trustee of LMIRT, the agency said.

The outlook is stable.

The ratings reflect the trust's established presence in Indonesia with its portfolio of retail malls and retail spaces spread across the 10 Indonesian cities and targeting the country's growing middle-income consumers, Moody’s said.

The trust generates a predictable income stream from its asset portfolio with healthy occupancy rates, well balanced lease expiry profiles and favorable lease payment structures, the agency said.

The ratings also consider an expectation that there will be reduction in the trust's revenue exposure to the Lippo group of companies to less than 25%, Moody’s said.

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