Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for Indika Energy Capital III Pte Ltd. > News item |
Fitch rates Indika notes B+
Fitch Ratings said it assigned Indika Energy Capital III Pte Ltd.'s proposed dollar-denominated notes, guaranteed by Indonesia-based PT Indika Energy Tbk. (B-/rating watch positive), an expected rating of B+(EXP) with a recovery rating of RR4.
Fitch said the positive watch reflects its expectations of an improvement in Indika's credit profile after the proposed acquisition of an additional 45% stake in PT Kideco Jaya Agung, Indika's key coal-mining asset.
The agency believes that the acquisition will enhance Indika's control over Kideco's operational and financial strategy and increase its access to Kideco's cash, which will be credit-positive relative to the incremental debt to finance the acquisition.
“We believe Indika's business profile and credit metrics will be comparable with other low BB rated coal peers following the proposed share purchase; however, the lumpy debt maturities around 2022/2023 constrain the ratings,” Fitch said in a news release.
“We are likely to upgrade Indika's ratings to B+ after it completes the proposed acquisition – including the proposed bond issuance to finance it.”
© 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.