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

(February 25, 2022)--PEFINDO has affirmed its “idA+” rating for PT Medco Energi Internasional Tbk’s (MEDC) Shelf Registration Bond II Phase IV Year 2017 Series B with a principal amount of IDR1 billion which will mature on March 30, 2022. The Company will repay its maturing bond using proceeds from the issuance of Shelf Registration Bond IV Phase I Year 2021 bond that has been secured in an escrow account. As of September 30, 2021, MEDC had cash and cash equivalent of USD547.2 million (including USD64.9 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 the first nine months of 2021 (9M2021), 80.4% of its revenue was generated from oil and gas, followed by the power business at 10.3%, trading 8.3%, and others 1.0%. At the end of September 2021, its shareholders consisted of PT Medco Daya Abadi Lestari (51.6%), Diamond Bridge Pte Ltd (21.5%), PT Medco Duta (0.2%), management (0.6%), and the public (26.1%). (ends)