Fitch puts Indika Energy on positive watch

Fitch Ratings said it placed PT Indika Energy Tbk.'s long-term foreign- and local-currency issuer default ratings of CCC on Rating Watch positive.

The agency also said it placed Indika's senior notes due 2018 and 2023, which are rated at CCC with recovery rating of RR4, on Rating Watch positive.

The agency also said it assigned an expected rating of B- with recovery rating of RR4 to Indika Energy Capital II Pte Ltd.'s proposed dollar-denominated guaranteed senior notes.

Indika, along with some of its subsidiaries, will unconditionally and irrevocably guarantee the proposed senior unsecured notes, Fitch said.

The notes will rank pari passu with other senior unsecured borrowings, the agency notes.

The positive watch reflects an expectation of improvement in Indika's liquidity on completion of the proposed refinancing of its 2018 notes, Fitch said.

The agency said it will likely upgrade Indika's ratings to B- after it completes the proposed bond issuance to refinance the 2018 notes.

S&P said it believes the proposed bond is not likely to result in any significant increase in Indika's annual debt refinancing needs.

© 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.