Moody’s affirms Indika

Moody's Investors Service said it affirmed PT Indika Energy Tbk.’s corporate family rating at B1 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 Indika, and Indika unconditionally guarantees the notes.

All outlooks remain negative.

"The ratings affirmation reflects our view that Indika's commitment to a conservative liquidity profile and capital structure supports the B1 rating despite weakening credit metrics. We expect depressed coal prices to weigh heavily on its coal related businesses in 2015, which will result in weaker margins and higher leverage," Moody's vice president and senior analyst Brian Grieser said in a news release.

"Indika is weakly-positioned at its B1 rating and therefore has limited headroom to accommodate a deterioration in liquidity during 2015."

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