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

(Singapore, November 11, 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 9 November 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 B1 CFR reflects its (1) modest scale of reserves and production; (2) revenue visibility from its fixed-price natural gas sales agreement, which accounts for nearly one-third of its total sales volume; and (3) very good liquidity resulting from proactive financial management, with the company refinancing its upcoming debt maturities in advance and increasing the average term to maturity of its debts.

On the other hand, Medco's rating is constrained by its exposure to commodity prices cyclicality, and its appetite for growth 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 published in August 2021. 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)