(Singapore, May 23, 2025)--Moody's Ratings (Moody's) has completed a periodic review of the ratings of United Tractors Tbk (PT) and other ratings that are associated with this issuer.
The review was conducted through a rating committee held on 19 May 2025 in which we reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), and recent developments.
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. Please see the Issuer page on https://ratings.moodys.com for the most updated credit rating action information and rating history.
Key Rating considerations and rationale are summarized below.
United Tractors Tbk (PT)'s Baa2 issuer rating reflects the company's long-term commitment to maintain a conservative financial profile; its market-leading position in the Indonesian mining services and heavy equipment industries; its excellent liquidity; and a one-notch uplift stemming from our expectation of a high likelihood of support from its parent company, PT Astra International Tbk (Astra).
United Tractors' businesses are exposed to the cyclicality in the end markets in which they operate; the credit quality of its counterparties, which mainly operate in the coal mining sector; the macroeconomic conditions in Indonesia (Baa2 stable); and execution risk associated with its business diversification initiatives.
This document summarizes our 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 Services published in November 2021. Please see the Rating Methodologies page on https://ratings.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 herein to the extent necessary, if they are part of the same organization list.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for the most updated credit rating action information and rating history. (ends)
