S&P: Bumi Resources 'CCC' Ratings Withdrawn At The Company's Request

(SINGAPORE (S&P Global Ratings) Jan. 27, 2023)--S&P Global Ratings said today that it has withdrawn its 'CCC' long-term issuer credit ratings on Bumi Resources Tbk. PT at the company's request. The ratings were on CreditWatch with positive implications at the time of the withdrawal.

At the time of withdrawal, Bumi's stand-alone credit profile (SACP) had improved following the repayment of its US$1.7 billion debt using the US$1.6 billion proceeds from a non-preemptive rights issuance in mid-October, 2022. The repayment of legacy debt eliminates any control by lenders over cash at the mine level.

Bumi can now receive and retain dividends from subsidiaries, significantly boosting its free cash flow and liquidity. In the absence of any near-term refinancing risk, coupled with the company's strengthened financial profile and liquidity, we revised upward our view of Bumi's SACP to 'b-' following the company's repayment of its outstanding debt.

Bumi's non-preemptive rights issuance has brought in a new controlling shareholding entity, Mach Energy (Hong Kong) Ltd. (MEL; not rated).

The rating on Bumi was on CreditWatch with positive implications at the time of the withdrawal, reflecting the potential for us to upgrade the company by up to two notches. The resolution of the CreditWatch was dependent upon the availability of information that would enable us to finalize our view of the creditworthiness of MEL, and whether MEL's creditworthiness constrains the rating below our view of Bumi's 'b-' SACP. (ends)