Lippo Malls Indonesia Retail Trust’s (LMIRT) was downgraded to CCC from CCC+ by Fitch, following doubts over its ability to refinance its S$547mn debt due in the coming 18 months. LMIRT’s senior unsecured notes due 2024 and 2026 were also downgraded to CCC from CCC+. The downgrades came just three weeks after a previous downgrade from B- to CCC+ in February. Fitch notes that LMIRT has inadequate liquidity to meet its significant maturity wall in the near term which heightens the risk of debt restructuring should it not be able to access bank loans for refinancing.
While LMIRT’s SGD Perps are trading at distressed levels of 16-17, its dollar bonds are stable at over 60 cents on the dollar. For instance, LMIRT’s 7.5% 2026s are at 62.38 yielding 27%.