RELEASE:Moody's reviews Adaro ratings for possible upgrade
Tuesday, November 6 2007 - 02:24 PM WIB
"The review has been prompted by a continued improvement in Adaro's financial profile and strong operating performance," says Laura Acres, a Moody's Vice President.
"The company has materially strengthened its balance sheet through continued deleveraging and also has a certainty of cash flow driven by its ability to lock in customers for substantial proportions of forward production over the next 3 years," adds Acres, also Moody's lead analyst for the company.
The review will focus on: 1) planned initiatives to improve further Adaro's operating efficiency metrics; 2) any resultant capex and funding requirements arising from those initiatives and plans to increase capacity; and 3) ongoing plans for deleveraging the balance sheet.
Adaro is Indonesia's largest single site coal producer in the southern hemisphere and one of the world's largest sub-bituminous coal companies. It exports approximately 70% of its products to Southeast Asia, the US and Europe, while the rest is for the domestic market.
Adaro is owned 36% by a group of international investors including Goldman Sachs, Citigroup, Farallon Capital, GIC of Singapore and the Kuok Group, remaining shares are held by Indonesian investors including the Edwin Soeryadjaya group (32%) and Theodore Rachmat group (32%).(End of release)