Fitch Downgrades Lippo Malls Indonesia Retail Trust’s Rating to “CCC”

March 11, 2023 – Fitch Ratings has downgraded Lippo Malls Indonesia Retail Trust’s (LMIRT) Long-Term Issuer Default Rating (IDR) to ‘CCC’, from ‘CCC+’. Fitch has also downgraded the rating on LMIRT’s senior unsecured notes due 2024 and 2026 to ‘CCC’, from ‘CCC+’, with the Recovery Rating of ‘RR4’. 

The downgrade reflects the increased likelihood that LMIRT will be unable to refinance its SGD547 million debt maturing over the next 18 months. This follows the trust’s announcement that it has appointed a financial advisor to explore how to maintain a sustainable capital structure and reduce leverage.