Fitch affirms & withdraws Radiant Utama Interinsco's ratings

(Jakarta/Singapore-01 December 2010)--Fitch Ratings has today affirmed PT Radiant Utama Interinsco Tbk's (Radiant) National Long-term rating at 'BBB(idn)' with Stable Outlook, and simultaneously withdrawn it. The agency has also withdrawn Radiant's existing IDR100bn senior notes due to early redemption on 29 November 2010. Fitch will no longer provide ratings or analytical coverage on this issuer.

Radiant's ratings and Outlook at the time of withdrawal reflect its long operating track record in Indonesia's oil and gas services sector, and its contract order book of approximately IDR1.3trn, mainly for 2010-2012, which provides moderate revenues and cash flow visibility. The ratings also factor in the company's customer base, which consists primarily of oil majors and large industrials that tend to have better credit profiles, which reduces counterparty risks.

By refinancing the IDR notes with a 3-year amortising loan facility, Radiant has improved its debt maturity profile. At end-September 2010, Radiant recorded annualised net debt/operating EBITDAR of 2.0x (end-2009: 1.5x). The agency expects leverage to further improve as debt is amortised.

Established in 1984, Radiant is engaged in Indonesia's non-construction oil and gas services, namely operating support services, offshore drilling and production services, certification and inspection services, as well as environmental assessment and training. Radiant is 61.58% owned by PT Radiant Nusa Investama (RNI), a holding company of the Radiant Utama Group. In the first nine months ending September 2010, Radiant recorded revenue of IDR759bn and EBITDA of IDR65bn. (ends)