Fitch: Indika view positive

Fitch Ratings said it revised Indika Energy Tbk.'s outlook to positive from stable and affirmed its long-term foreign- and local-currency issuer default ratings at B+.

Indika's $65 million notes due in 2012, $230 million notes due in 2016 and its $300 million notes due in 2018 were affirmed at senior unsecured B+ with Recovery Ratings of RR4.

The outlook reflects expectation of a sustained improvement in Indika's credit profile, owing to both robust dividend inflows from its 46%-held associate, PT Kideco Jaya Agung and increasing scale and diversity of the rest of its operations, according to the agency.

Fitch said it expects Indika to deleverage post-2012, with debt net of cash to operating EBITDA (including dividends from Kideco) below 1.5x.

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