Moody's downgrades Indika to Caa1; outlook negative

(Singapore, April 06, 2016) -- Moody's Investors Service has downgraded the corporate family rating (CFR) of Indika Energy Tbk (P.T.) to Caa1 from B3.

At the same time, Moody's has also downgraded the ratings on the $171 million notes due 2018 and issued by Indo Energy Finance B.V., as well as the ratings on the $500 million notes due 2023 and issued by Indo Energy Finance II B.V.. Both ratings have been downgraded to Caa1 from B3.

The two bond issuing entities are wholly-owned subsidiaries of Indika and both notes are unconditionally guaranteed by Indika.

The ratings outlook is negative.

Moody's rating actions conclude Moody's review of the ratings above, initiated on 22 January 2016 when Moody's placed the ratings on review for downgrade, reflecting Moody's effort to recalibrate ratings in the mining industry to align with the fundamental shift in the credit conditions faced by the global mining sector. (ends)