Moody's gives B1 to Tunas Baru notes

Moody's Investors Service said it gave a B1 rating to PT Tunas Baru Lampung Tbk.’s (TBLA) planned dollar-denominated senior unsecured notes.

"The B1 rating on the proposed notes is in line with TBLA's B1 corporate family rating, as the presence of upstream guarantees from major operating subsidiaries mitigates structural subordination risk for bondholders," said Maisam Hasnain, a Moody's assistant vice president and analyst, in a press release.

Tunas Baru plans to use the proceeds to fully repay its $198 million of senior notes due January 2023 issued by its wholly-owned subsidiary TBLA International Pte. Ltd., to fund one semi-annual coupon payment in the interest reserve account for its new notes and to pay transaction expenses for its new notes.

The outlook is stable.

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