Moody's announces completion of a periodic review of ratings of Medco Energi Internasional Tbk (P.T.)

(Singapore, January 15, 2021) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Medco Energi Internasional Tbk (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 12 January 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.

Medco Energi Internasional Tbk (P.T.)'s (Medco) B1 rating is supported by its better scale and geographic distribution of its reserves and production following the acquisition of Ophir Energy plc in 2019. The rating also incorporates the company's cash flow visibility with revenue from fixed price gas contracts accounting for about one-third of its total revenue. Medco's rating benefits from its very good liquidity with the company proactively refinancing its upcoming debt maturities in advance.

However, the rating remains constrained by Medco's exposure to the cyclicality in commodity prices and its appetite to increase scale through acquisitions and investments.

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 Independent Exploration and Production Industry published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

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

This publication does not announce a credit rating action. 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. (ends)