Moody's Raises Lippo Karawaci's Debt Outlook Rating To Positive, Grandson Of Conglomerate Mochtar Riady: Thanks To The Company's High Pre-sales

JAKARTA - The international rating agency Moody's Investor Service has raised the outlook for the debt rating of PT Lippo Karawaci Tbk (LPKR). Moody's upgraded the rating outlook for the property company owned by conglomerate Mochtar Riady to positive from stable.

The positive outlook was given after Moody's reviewed LPKR's business performance, financial position and liquidity. Lippo Karawaci CEO John Riady said that the change in the company's rating outlook to positive is proof of the improvement in the holding company's operating cash flow.

This, said the grandson of Mochtar Riady, is reflected in the increase in pre-sales income, completion of existing projects, distribution of dividends to subsidiaries, as well as productivity in negotiating debt for rent subsidy fees.

"We are pleased with the 'Positive' rating outlook from Moody's supported by improved cash flow, increased liquidity and strong pre-sales from the company," John wrote in a press release, quoted Monday, November 29.

Meanwhile, Moody's is said to open an opportunity to raise LPKR's rating to B2 from B3 if the operating cash flow of the holding company is in a positive area. In addition, other conditions are also if LPKR does not depend on asset sales and the debt ratio shows improvement.

For information, based on the financial statements ending on September 30, 2021, Lippo Karawaci experienced a 44.20 percent increase in revenue to Rp. 10.95 trillion from the position of Rp. 7.59 trillion in the third quarter of 2021.

The loss for the current period attributable to owners of the parent company was also drastically reduced to a loss of Rp573.29 billion from the previous loss of Rp2.34 trillion. LPKR's EBITDA increased by 84 percent in line with the growth of its property and healthcare business.