PEFINDO: Rating for PT Medco Energi Internasional Tbk’s maturing bond affirmed at “idA+”

(January 26, 2021)--PEFINDO has affirmed its “idA+” ratings for PT Medco Energi Internasional Tbk’s (MEDC) Shelf Registration Bond III Phase I Year 2018 Series A with a principal amount of IDR282.5 billion which will mature on March 29, 2021. The Company will repay its maturing bond using proceeds from the latest USD denominated bond that has been secured in an escrow account. As of November 2020, it had a total of USD73.8 million proceeds from USD denominated bond issuance that was aimed to repay all bonds that mature in 2021.

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. During the first nine months of 2020 (9M2020), 85.6% of its revenue was generated from oil and gas, followed by the power business at 14.1%, and other services at 0.3%. At the end of September 2020, its shareholders were PT Medco Daya Abadi Lestari (50.6%), Diamond Bridge Pte Ltd (21.6%), PT Medco Duta (0.2%), management (1.3%), and public (26.3%). (ends)