KONTAN.CO.ID - JAKARTA. Moody’s Investors Service has said a bribery allegation relating to the issuance of property permits for the Meikarta project is credit negative for Lippo Karawaci because it highlights the company's corporate governance challenges and potential reputational damage that will hurt both investor and consumer confidence. “Weaker consumer confidence will slow new marketing sales at the Meikarta project while uncertainty around the completion of units sold could delay or reduce cash collection from customers,” said Jacintha Poh, Woody’s senior analyst, said in a statement on Thursday. Poh said negative investor sentiment resulting from the allegations could aggravate Lippo Karawaci's poor liquidity and further drive up the yield-to-maturity on the company's outstanding US dollar bonds.
Lippo Karawaci's alleged bribery is credit negative: Moody’s
KONTAN.CO.ID - JAKARTA. Moody’s Investors Service has said a bribery allegation relating to the issuance of property permits for the Meikarta project is credit negative for Lippo Karawaci because it highlights the company's corporate governance challenges and potential reputational damage that will hurt both investor and consumer confidence. “Weaker consumer confidence will slow new marketing sales at the Meikarta project while uncertainty around the completion of units sold could delay or reduce cash collection from customers,” said Jacintha Poh, Woody’s senior analyst, said in a statement on Thursday. Poh said negative investor sentiment resulting from the allegations could aggravate Lippo Karawaci's poor liquidity and further drive up the yield-to-maturity on the company's outstanding US dollar bonds.