Moody's revises Inalum view to stable

Moody's Investors Service said it changed the outlook for Indonesia Asahan Aluminium (Persero) (PT) (Inalum) to stable from negative and affirmed the Baa2 ratings on the company and its senior unsecured notes.

"The rating affirmation and outlook change to stable reflect the stronger performance of Inalum's subsidiaries, especially PT Timah (Persero) Tbk. and PT Aneka Tambang (Persero) Tbk. (Antam), which we expect will be sustained for the next two to three years, and will contribute to lower leverage at the consolidated level," said Nidhi Dhruv, a Moody's vice president and senior analyst, in a press release.

Also, the agency noted PT Freeport Indonesia’s production has also been in line with forecasts, and Inalum's management expects to receive an initial dividend from it this year, which will increase significantly from 2023 onwards, when PTFI displaces Bukit Asam to become the largest contributor of dividends to the holding company, Inalum.

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