Fitch upgrades Indika Energy

Fitch Ratings said it upgraded PT Indika Energy Tbk.'s long-term foreign- and local-currency issuer default ratings to B- from CCC.

The agency also said it upgraded Indika's outstanding senior notes due 2018 and 2023 to B- from CCC with recovery rating of RR4.

All of the ratings were removed from Rating Watch positive and a stable outlook was assigned, Fitch said.

The agency also said it assigned a final rating of B- with recovery rating of RR4 to Indika Energy Capital II Pte Ltd,'s $265 million senior notes, which are guaranteed by Indika.

The upgrade follows the successful issue of the notes to refinance Indika's 2018 dollar-denominated note maturities, Fitch explained.

The issue has improved Indika's liquidity, which is in addition to an expected cash flow improvement due to higher thermal coal prices, the agency noted.

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