Fitch: Indo Energy notes B+

Fitch Ratings has affirmed Indika Energy Tbk's long-term foreign- and local-currency issuer default ratings at B+, along with its $250 million of notes due 2012 and $230 million of notes due 2016 at senior unsecured B+ with recovery ratings of RR4.

The agency also said it assigned Indo Energy Finance BV's proposed 2018 dollar-denominated notes, which are guaranteed by Indika and certain subsidiaries, an expected rating of B+ with a recovery rating of RR4.

The final rating is contingent upon the receipt of documents conforming to information already received.

The affirmation reflects strong dividend flows from Indika's 46%-held PT Kideco Jaya Agung, the third-largest coal producer in Indonesia, Fitch said, along with its modest financial leverage and strong liquidity profile.

The amount of dividends received from Kideco is likely to remain strong given increasing coal production and expected robust coal prices, the agency said.

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