Fitch gives Medco positive outlook

Fitch Ratings said it removed PT Medco Energi Internasional Tbk.'s ratings from rating watch positive and assigned a positive outlook. The agency also affirmed Medco’s long-term issuer default rating at B+ and the ratings on Medco's senior unsecured U.S.-dollar notes at B+ with an RR4 recovery rating.

The removal from the positive watch follows Medco completing the acquisition of ConocoPhillips Indonesia Holding Ltd., Fitch said.

“The positive outlook reflects Medco's improved operating profile post the acquisition, with a larger scale and a more favorable earning mix due to a higher share of fixed-price contracts. “We expect Medco's EBITDA from fixed-price contracts to remain above 2.5x of interest expense, up from around 1x prior to the acquisition, until 2025,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.