JAKARTA. Moody's, an international debt rating agency, gave "Ba1" rating to PT Adaro Indonesia, a subsidiary of PT Adaro Energy Tbk (ADRO).
Masiam Hasnain, Assistant Vice President and Analyst at Moody's said that Adaro Indonesia's rating reflects a fairly strong relationship between the parent company and its subsidiaries. ADRO itself controls 88.5% of Adaro Indonesia shares.
In his official statement, Hasnain also mentioned ADRO as the coal producer with the largest single location in Indonesia. ADRO's average annual production of thermal coal has reached 50 million tons since 2013.
However, this was not followed by diversification of business. The company only relies on thermal coal sales to support its performance over the next few years. The company's credit quality is also slightly disrupted.
Moody's consider ADRO's credit outlook as stable. This is supported by the expectation that ADRO can extend its business license which will expire on October 2022. (KR/AR)