Moody’s Investor Services has downgraded its rating for Lippo Malls Indonesia Retail Trust to a non-investment grade corporate family rating of Ba1, down from an investment-grade issuer rating of Baa3 previously.
The downgrade followed a review of the REIT that was prompted by deteriorating credit quality of key entities within the Lippo group, said Moody’s.
The group contributes approximately one-third of Lippo Malls Indonesia Retail Trust’s total revenue, said Moody’s.
As a result of the downgrade, the REIT’s Baa3 issuer rating has also been withdrawn by Moody’s, and it has instead been assigned a Ba1 corporate family rating.
The REIT’s rating outlook is negative, Moody’s added.