Moody's rates ABM Investama bond Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to PT ABM Investama Tbk.

The outlook is stable.

The agency also said it assigned a Ba3 rating to the proposed senior unsecured bond issued by the company.

The proceeds, along with cash on hand, will be used to refinance existing corporate debt of the restricted group, Moody's said.

The ratings reflect ABM's track record of maintaining a strong performance through the cycle, supported by its integrated operations and focus on costs, the agency said.

The ratings also consider the company's moderate financial profile, supported by its prudent capital management and resilient performance during the recent downturn in coal prices, Moody's added.

The ratings are constrained by ABM's high exposure to the cyclical thermal coal industry, small scale, execution risk and customer concentration risk, the agency said.

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