Moody's changes Indika view to negative

Moody's Investors Service said it changed the outlook for Indika Energy Tbk. to negative from stable.

Concurrently, the agency affirmed Indika's B1 corporate family rating and the B1 ratings on the $300 million notes due 2018 and $500 million notes due 2023, issued by Indo Energy Finance BV and Indo Energy Finance II BV, respectively. The entities are wholly owned subsidiaries of by Indika.

Indika unconditionally guarantees the notes.

"The change in outlook to negative reflects the increasing pressure on Indika's operations as a result of the persistent weakness in thermal coal prices coupled with Moody's expectation that coal prices will remain under pressure during the next 12 months," Moody's vice president and senior analyst Brian Grieser said in a news release.

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