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

(March 24, 2022)--PEFINDO has affirmed its “idA+” rating for PT Medco Energi Internasional Tbk’s (MEDC) Shelf Registered Bond II Year 2017 Phase V Seri C of IDR753.5 billion and Shelf Registered Bond II Year 2017 Phase VI Seri B of IDR151.5 billion, in accordance with the resolution of Bondholders Meeting, both of them will be early repaid on March 25, 2022. The Company will repay its maturing bond using proceeds from the issuance of Shelf Registered Bond IV Year 2021 Phase I 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)