Fitch Ratings rated Adaro Indonesia's bond BB+

Thursday, 22/10/2009 15:27 WIB
Fitch Ratings rated Adaro Indonesia's bond BB+

by: Irvin Avriano

JAKARTA (Bisnis.com): Fitch Ratings finalizing the bond ratings of PT Adaro Indonesia worth U.S. $ 800 million of guaranteed PT Adaro Energy Tbk as the parent company at the level of BB+. Prospect rankings were determined stable.

The debt securities will mature in 2019. Rates were similar to ratings expectations given by the agency earlier this month.

Based on the press release of Fitch Ratings, the ratings action associated with the completed of the submitted documents by the issuers to Fitch Ratings.

Such ratings reflect support assessed from low cost companies operational, the company's strong financial growth, strong relationships with corporate customers, and the growth of good financial condition.

Besides Adaro Indonesia, five companies in Indonesia will flood global markets with the issuance of U.S. dollar-denominated bonds with a total value of U.S. $ 2.58 billion (Rp25 trillion) in a week or two. The plan indicates that the global bond markets recovered and foreign investors interested in the corporation in Indonesia.

Some executives who know the deal said the four companies include PT Bukit Makmur Mandiri Utama (Buma), PT Chandra Asri Petrochemical Center, PT Indika Energy Tbk by its subsidiaries Indo Integrated Energy II BV, PT Perusahaan Listrik Negara (PLN), and PT Bumi Resources Tbk.

Bond analyst from PT Trimegah Securities Tbk Octavianus Bramantya said issuance rate U.S. dollar-denominated debt will not interfere with the publication carried out several similar issuers later this year.

"For dollar bonds, the investor base is not limited because it should not be solely marketed to regional investors, but more extensive example to Asia or Europe and America."

According to him, funding institutions such as investment managers, hedge funds, private equity, and other global investors are still quite large compared with the regional market and domestic market.(Er)