PEFINDO: PT Medco Energi Internasional Tbk’s maturing bond rated “idA+”

(October 25, 2021)--PEFINDO has affirmed its “idA+” rating for PT Medco Energi Internasional Tbk’s (MEDC) Shelf Registration Bond II Phase III Year 2016 Series B with a principal amount of IDR5 billion which will mature on December 21, 2021. The Company will repay its maturing bond using proceeds from the Company’s internal cash flow. As of March 31, 2021, MEDC had cash and cash equivalent of USD694.1 million (including USD189.7 million restricted time deposit and cash in banks).

Debt security rated idA indicates that the obligor’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian obligors, is strong, however, the debt security is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated debt. The Plus (+) sign indicates that the rating is relatively strong within the respective rating category.

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 1Q2021, 92.4% of its revenue was generated from oil and gas, followed by the power business at 7.3%, and others at 0.3%. At the end of March 2021, its shareholders were PT Medco Daya Abadi Lestari (51.6%), Diamond Bridge Pte Ltd (21.5%), PT Medco Duta (0.2%), management (0.6%), and public (26.1%). (ends)