Release: Fitch assigns final 'B+' rating to Indika's new USD notes

(Jakarta/Singapore-05 November 2009): Fitch Ratings has today assigned a final issue rating of 'B+' with a recovery rating of 'RR4' to the USD230 million senior notes due 5 November 2016 issued by Indo Integrated Energy II B.V. and guaranteed by PT Indika Energy Tbk (Indika) and PT Indika Inti Corpindo.

The rating action follows the completion of the notes issue and receipt of documents conforming to the information previously received. The final rating is the same as the expected ratings assigned on 21 October 2009.

Indika's foreign currency and local currency Issuer Default Ratings (IDR) are 'B+' with a Stable Outlook. The ratings reflect the dividend flow received from its 46%-owned associate, PT Kideco Jaya Agung (Kideco) - the third-largest coal producer in Indonesia, which Fitch expects to remain strong due to the prevailing high coal prices and Kideco's plan to ramp up production. Indika's status as an investment holding company without a majority stake in Kideco constrains the rating.

Established in 2002, Indika is an investment holding company with three business segments: energy services, energy resources and energy infrastructure. In the first six months ended 30 June 2009, Indika posted revenue of IDR815.2bn and net income of IDR360.6bn.(end of release)