PEFINDO has assigned its idA- rating with stable outlook to PT MNC Energy Investments Tbk (IATA)

(July 27, 2023)--The rating reflects IATA’s low-cost position, conservative capital structure, as well as sizeable mining reserves and resources. The rating is constrained by the Company’s moderate financial flexibility as well as its exposure to the fluctuating commodity prices and environment risk.

The rating may be raised if the Company successfully executes its business strategies, reflected by achieving its projected revenue and profit in the medium term. A more diversified business may also positively impact the IATA’s rating as this could also improve its financial flexibility. On the other hand, the rating may be lowered should IATA generates revenue or EBITDA significantly below the targets or it incurs debt more than projected which may aggravate its financial profile. The rating could also be under pressure should the coal price drops significantly which will negatively impact IATA’s financial figures.

Established in 1968 initially under the name of PT Indonesia Transport & Infrastructure, IATA is part of MNC Group and focusing on coal mining industry. The Company operates three operating mines located in South Sumatera under PT Putra Muba Coal, PT Bhumi Sriwijaya Perdana Coal, and PT Indonesia Batu Prima Energy. As of March 31, 2023, its shareholders were PT MNC Asia Holding Tbk (44.09%) and the public (55.91%). (ends)