Moody's announces completion of a periodic review of ratings of Golden Energy And Resources Ltd

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

Golden Energy And Resources Ltd's B1 rating is supported by (1) its 67% effective ownership of PT Golden Energy Mines Tbk (GEMS), an Indonesian thermal coal producer with growing production volumes and a long reserve life, supported by its integrated operations; and (2) the group's track record of prudent capital management and performance through the coal price cycle.

The rating is constrained by (1) its dependence on cash dividends from subsidiaries, in particular from GEMS, to service its debt; (2) the execution risks associated with its investment strategy; and (3) its exposure to the cyclical thermal coal sector, with reliance on one mine for most of its cash flow.

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. (ends)