PEFINDO has assigned its idA+ ratings to PT Bukit Makmur Mandiri Utama

(December 8, 2023)--PEFINDO has assigned its idA+ ratings to PT Bukit Makmur Mandiri Utama (BUMA) and its proposed Bond I of maximum IDR1.5 trillion. Proceed from the bond issuance will be used to finance its capital expenditure (50%) and working capital (50%). The outlook for corporate rating is stable.

The rating reflects BUMA’s business strong position, strong operating management, and strong financial flexibility. The rating is constrained by the Company’s moderate capital structure as well as its exposure to the fluctuating commodity prices and environmental risk.

The rating may be raised if BUMA is successfully expanding its business scale by diversifying its business segment while also improving its capital structure on a sustained basis. However, the rating may be lowered if it obtains substantial amount of external debt beyond our projection without being compensated by a better business performance. Any significant shortfall in sales production from its key customers may also trigger to a rating downgrade.

BUMA is a coal mining contractor company that provides overburden removal, coal getting, coal hauling, and rehabilitation services in both Indonesia and Australia. The Company currently works in nine mining sites in Indonesia and six mining sites in Australia. As of September 30, 2023, it was owned by PT Delta Dunia Makmur Tbk by 99.99% and Ronald Sutardja by 0.01%. (ends)