Fitch gives Inalum notes BBB-

Fitch Ratings said it assigned PT Indonesia Asahan Aluminium (Persero) (Inalum) a long-term foreign currency issuer default rating of BBB- with a stable outlook and a senior unsecured rating of BBB-.

The agency also assigned Inalum's proposed dollar senior unsecured notes an expected rating of BBB-.

Fitch said that Inalum's ratings are one notch below the rating of Indonesia (BBB/stable), in line with the agency’s government-related entities rating criteria.

This is based on an assessment of strong linkages between Inalum and the state as well as the state's incentive to provide support, Fitch said.

The agency said it assesses Inalum's standalone credit profile at B+, factoring in its operating strengths of a favorable cost position, long mine lives for key minerals and commodity diversification, which are offset by a weak financial profile over 2019-2020, a key constraint on the standalone profile.

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