PEFINDO has lowered the rating of PT Ricobana Abadi (RICO)’s Medium-Term Notes

(December 20, 2023)--PEFINDO has lowered the rating of PT Ricobana Abadi (RICO)’s Medium-Term Notes (MTN) I Year 2017 to idD from idCCC. At the same time, we also lowered RICO’s corporate rating to “idSD” from “idCCC” with negative outlook. The rating actions follows RICO’s inability to extend the remedial period of its MTN which has expired on December 16, 2023. Initially, the Company has failed to address its maturing MTN amounting of IDR400 billion due on December 20, 2022, and since then RICO has obtained extension for the remedial period from its MTN holders.

We may revisit the rating if the Company successfully resolves the MTN’s restructuring process.

RICO was established in February 1981 and operated as coal mining contractor since 2007 with activities including overburden removal, coal hauling, and heavy equipment rental. RICO is an indirect subsidiary of PT SMR Utama Tbk through PT Ricobana and is ultimately owned by PT Trada Alam Minera Tbk. As of September 30, 2023, the Company was owned by PT Adibrata Cipta (previously PT Ricobana) (99.99%) and Mr. Wijaya Mulia (0.01%). (ends)