Moody’s reviews Indika, rates notes Caa1

Moody's Investors Service said it placed the Caa1 corporate family rating of Indika Energy Tbk. and the Caa1 ratings on the $171 million senior secured notes issued by Indo Energy Finance BV and the $500 million senior secured notes issued by Indo Energy Finance II BV on review for upgrade following the announcement of Indika's refinancing plan.

The agency also assigned a Caa1 rating to the proposed $225 million senior secured notes to be issued by Indika's wholly owned subsidiary, Indika Energy Capital II Pte. Ltd., and guaranteed by Indika.

The proposed notes were also placed on review for upgrade.

On March 27, Indika announced its plan to issue $225 million of new senior secured notes, the proceeds of which will be used to repay the current outstanding notes of $171.4 million which mature in May 2018.

The review for upgrade will focus on Indika's execution of its plan to refinance its maturing debt. In particular, Moody's said it will assess the company's capital structure, credit profile and interest burden following the completion of the proposed transaction.

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