S&P lifts Medco Energi view to positive

S&P said it revised the outlook on PT Medco Energi Internasional Tbk.'s to positive from stable.

The agency also said it affirmed the company's B long-term issuer credit rating and B long-term issue rating on the various U.S. dollar-denominated senior unsecured notes the company guarantees.

The company's production profile and cash flow leverage are strengthening as it progresses to complete the acquisition of Ophir Energy plc, S&P said.

The acquisition adds production scale and operational diversity, the agency said.

Healthy cash flows and controlled growth investments will likely improve Medco's cash flow leverage to commensurate with a higher rating over next nine- to 12-months, the agency said.

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