Moody's announces completion of a periodic review of ratings of Bukit Makmur Mandiri Utama (P.T.)

(Singapore, December 16, 2020) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bukit Makmur Mandiri Utama (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review on Day Month 2021 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.

Bukit Makmur Mandiri Utama (P.T.)'s Ba3 rating reflects (1) its position as Indonesia's second-largest coal mining services contractor by overburden volume, with a well-recognized franchise and established relationships with Indonesia's largest coal miners; (2) the long-term contracts which provide revenue visibility; and (3) our expectation that BUMA will maintain a prudent capital structure with conservative financial policies.

At the same time, the rating is constrained by its (1) high degree of customer concentration risk, namely to Berau Coal (P.T.); (2) geographic concentration in Indonesia; (3) exposure to the cyclicality in the thermal coal sector; and (4) near-term refinancing risk relating to its US dollar bond maturity in February 2022.

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 Business and Consumer Service Industry published in October 2016. 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)