Lippo Karawaci Rights Issue to Provide Liquidity to 2020: Lucror

(Bloomberg) -- Lippo Karawaci’s recent completion of a right issue will give the company enough liquidity until the end of 2020, and help it execute its turnaround plan, Trung Nguyen, senior credit analyst at Lucror Analytics, writes in a note.

Sales of Puri mall by the co., expected to be completed in Q4, with a consideration of $200m, will boost Lippo’s liquidity to meet operational expenses and debt obligations to end-2021: Lucror

NOTE: Fitch upgraded Lippo to B- with a stable outlook from CCC+ last Friday, after Lippo completed its $787.5m rights issue on July 16; S&P Global Ratings upgraded rating to B- on July 18, citing rights issuance.

Lucror maintained its hold rating on the co.’s notes, saying they now seem fairly valued after significant compression.