Fitch changes Medco Energi view

Fitch Ratings said it revised PT Medco Energi Internasional Tbk.'s outlook to positive from stable and affirmed its long-term issuer default rating at B.

The agency also affirmed the rating on senior unsecured dollar-denominated notes, issued by wholly owned subsidiaries Medco Platinum Road Pte. Ltd. and Medco Strait Services Pte. Ltd. and guaranteed by Medco and several of its subsidiaries, at B with a recovery rating of RR4.

“The outlook was revised due to our expectations of an improvement in Medco's financial profile, driven by strong oil and gas prices,” Fitch said in a news release.

The agency said it expects Medco's leverage, measured by funds from operations adjusted net leverage, to decline to less than 4 times from 2019, compared with a forecast 4.5 times in 2018.

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