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

(Singapore, December 16, 2020) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bayan Resources 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.

Bayan Resources Tbk (P.T.)'s Ba3 corporate family rating considers the company's increasing thermal coal production; long reserve life of its mines; solid profitability supported by its competitive cost structure; and its adherence to prudent financial policies.

Bayan's Ba3 rating is constrained by of its limited product and geographic diversity, given its single-commodity exposure to thermal coal with mining operations located in Kalimantan, Indonesia.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Mining published in September 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit. (ends)