PEFINDO has affirmed its idAA- ratings to PT Medco Energi Internasional Tbk

(April 8, 2026)--PEFINDO has affirmed its idAA- ratings to PT Medco Energi Internasional Tbk (MEDC) and its outstanding bonds. Outlook for the corporate rating is stable. The rating reflects MEDC’s diversified assets, a high proportion of revenue from gas with fixed prices, which contributes to cash flow visibility, and good operating management. The rating is constrained by its moderate financial profile as well as inherent risks related to the commodity-based sectors and exposure to energy transition risk.

The rating may be raised if MEDC’s continuous deleveraging efforts result in a conservative financial profile indicated by financial leverage (excluding the power segment) maintained below 2x. This should be bolstered by the endeavor to improve its reserve life. The rating may be lowered if the Company incurs higher-than-projected debt without being compensated by a stronger business profile, which may weaken its financial profile on a sustained basis. The rating may also be lowered if any operating oil and gas asset is significantly affected by escalated geopolitical turmoil. Declining commodity prices significantly below our anticipation, adversely affecting its revenue and profitability, may also put the rating under pressure.

MEDC is a publicly listed, integrated energy and natural resources company with three main businesses in its core business of oil and gas exploration and production (E&P) activities in Indonesia, the Middle East, North Africa, and Southeast Asia; power generation; and mining. In 2025, 63.7% of its revenue was generated from oil and gas, followed by trading (27.9%), power business (7.4%), and others (1.0%). At the end of 2025, its shareholders consisted of PT Medco Daya Abadi Lestari (52.45%), Diamond Bridge Pte Ltd (21.86%), PT Medco Duta (0.12%), management (1.49%), and the public (24.08%). (ends)