JAKARTA. Analysts believe that the improvement in the debt rating of PT Medco Energi International Tbk (MEDC) given by two international rating agencies, as well as the corporate action of the company, will help the company's revenue and profit growth.
Recently, two international rating agencies, Moody's Investor Service improved the debt rating of PT Medco Energi Internasional Tbk (MEDC), from B2 to B1 with a stable outlook. Standard & Poor's (S&P) also improved its rating for Medco Energi from B with a positive outlook to B + with a stable outlook.
An analyst from Henan Putihrai Sekuritas, Liza Camelia assesses that healthy leverage conditions make MEDC deserving of a debt rating improvement. Moreover, she said, this condition was also supported by the company's corporate actions, including the divestment of its assets in Libya and North Africa. "That will help sustain Medco's revenue and profit growth," Liza said.
The growth will be supported further by the start of drilling in the North Songkang oil and gas block, East Natuna.
Meanwhile, the effect of the acquisition of Ophir will enable MEDC to record recurring income of US$ 50 million per year starting in 2020. (AM/AR)