Fitch assigns final 'BB-' rating to PT Bukit Makmur Mandiri Utama's notes

(Singapore/Jakarta-02 November 2009): Fitch Ratings has today assigned a final issue rating of 'BB-' to the USD315m senior secured notes due 3 November 2014 issued by Prime Dig Pte Ltd and guaranteed by PT Bukit Makmur Mandiri Utama (BUMA). This follows the completion of the notes issue and receipt of documents conforming to information previously received. The final rating is the same as the expected rating assigned on 14 September 2009.

BUMA's 'BB-' Long-term foreign currency Issuer Default Rating (IDR) with a Stable Outlook and National Long-term rating of 'AA-(idn)' with a Stable Outlook reflect its established position as the second-largest coal mining contractor in Indonesia with a market share of 19%, its proven ability to win contracts from new and existing customers, and its large contract backlog (more than 6x BUMA's volumes in 2008), which provides good earnings visibility over the next five to seven years. The ratings also take into consideration BUMA's quality customer base consisting of some of Indonesia's largest and most profitable mining companies. The company's ratings are however constrained by its indirect exposure to coal prices, the capital intensive nature of operations and risks associated with Indonesia's developing regulatory framework.

Although the cost of BUMA's debt is somewhat higher than what was initially anticipated by Fitch, its credit metrics are expected to improve through 2014 given its strong operating cash generation and repayment of bank borrowings.(end of release)