Singapore, November 04, 2013 -- Moody's Investors Service says that PT 
Lippo Karawaci Tbk's (LK) higher revenue generated from recurring income 
sources, especially the healthcare segment is positive for the company. 
LK remains well placed within the Ba3 corporate family rating and senior 
unsecured rating level.

Both rating outlooks remain stable.

"A higher proportion of recurring income is viewed positively, as this 
provides a stable revenue source, hedging against the more volatile 
property development segments," says Jacintha Poh, a Moody's Analyst.

For the nine months period ended 30 September 2013 (3Q 2013), recurring
income contributed 57% of total revenue compared to 51% over the same period last year. The healthcare segment -- a major contributor of 
recurring income -- reported a year-on-year increase of 47%, leading to a 
38% increase in total recurring income.

Despite the challenging macroeconomic environment, LK continues to record 
strong marketing sales in both residential and office segments. The 
company's recent launch of Lippo Thamrin, a grade A strata-titled office 
tower located in the central business district of Jakarta, was fully sold 
shortly after its launch.

"There will be sustained demand in the Indonesian property sector,
supported by the country's growing population, urbanization and healthy 
GDP per capita," says Poh.

"Nonetheless, we expect growth momentum for the sector to be less robust 
compared to the last two years, and the increase in property prices will 
likely moderate in the near-to-medium term," she adds.

In 3Q 2013, LK's adjusted leverage increased to 42% from 40% in financial 
year 2012 while adjusted EBITDA/interest deteriorated to 3.6x from 4.4x 
in the previous financial year. Nonetheless, the ratios remain within our 
rating parameters.

LK's debt maturity profile remains healthy with its first major debt 
maturing only in financial year 2019. As at 30 September 2013, the 
company reported cash balance IDR3.3 trillion, providing a buffer for 
working capital and contingent funding needs.