Moody's announces completion of a periodic review of ratings of ABM Investama Tbk (P.T.)

(Singapore, April 30, 2019) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of ABM Investama Tbk (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

ABM Investama Tbk (P.T.) (ABM) Ba3 corporate family rating reflects (1) its integrated operations which support cost synergies and earnings diversification, (2) track record of maintaining a stable financial profile through the coal price cycle, and (3) revenue visibility through contracts and long-term relationships with customers.

At the same time, the rating is constrained by ABM's (1) weakening business profile and operational challenges at its core businesses which will temper earnings growth (2) declining reserves at its key mine, PT Tunas Inti Abadi (TIA), which is nearing the end of its reserve life, and (3) uncertainty around its acquisition strategy. (ends)