SINGAPORE (Nov 20): Indonesian property developer Lippo Karawaci has expressed regret over a credit downgrade by Fitch Ratings, saying its IDR 6 trillion ($564 million) divestment plan to strengthen capital was progressing smoothly.

The global credit rating agency on Friday downgraded Lippo Karawaci's long-term foreign and local currency issuer default ratings by two notches as well as subsidiary Theta Capital's USD bonds to CCC+ from B, citing liquidity risks as a result of uncertainty over asset sales, on which Lippo has been increasingly reliant to service debt obligations.

The ratings agency added that uncertainty had been worsened by bribery allegations surrounding its Meikarta flagship development in Cikarang, West Java, a US$21 billion ($29 billion) urban project outside Jakarta developed by Lippo subsidiary Mahkota Sentosa Utama.

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