Fitch lowers Ideal Energy

Fitch Ratings said it downgraded Ideal Energy Projects Ltd.'s Rp. 11.07 billion senior project loans to Fitch BB-(ind) from Fitch BB+(ind). The outlook is negative.

The agency said the downgrade reflects Ideal Energy's continuing delay in the commissioning of a 270 MW coal-based thermal power plant at Nagpur and the consequent estimated cost overrun of Rp. 2.84 billion.

Fitch said the rating action also reflects deterioration in the project's credit quality due to Ideal Energy's inability to conclude long-term off-take arrangements with end user utilities, as initially envisaged.

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