Fitch rates Inalum notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to PT Indonesia Asahan Aluminium (Persero)'s (Inalum) $1 billion 5.23% notes due 2021, $1.25 billion 5.71% notes due 2023, $1 billion 6.53% notes due 2028 and $750 million 6.757% notes due 2048.

Government-owned Inalum is Indonesia's only primary aluminum producer and owns 65% stakes in three subsidiaries – PT Bukit Asam Tbk, PT Aneka Tambang Tbk (Antam) and PT Timah Tbk., which are mainly engaged in the production of coal, nickel and tin, respectively, Fitch said.

Inalum's issuer default rating and senior unsecured rating are one notch lower than the rating of Indonesia, the agency said, in line with its government-related entities criteria.

Fitch said it estimates the company's leverage at higher than 6x.

The agency said it assesses Inalum's standalone credit profile at B+, considering its operating strengths, favorable cost position, long mine lives for key minerals and commodity diversification.

The ratings are offset by a weak financial profile from 2019 to 2020, a key constraint on the standalone profile, the agency said.

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