HomeNewsVideos

Moody’s gives "Baa2" rating for Inalum and its planned bonds

08 May 2020 06:18

SINGAPORE. Moody's Investors Service gives 'Baa2" level for PT Indonesia Asahan Aluminum's (Inalum) ratings and bonds with negative outlook.

Inalum plans to use the proceeds from the bond issuance to acquire 20% -25% of PT Vale Indonesia Tbk's shares and for debt refinancing.

Nidhi Dhruv, Moody's Vice President and Senior Analyst, said Moody's predicted that Inalum's financial performance would be weaker due to falling commodity prices. In addition, the planned acquisition of Vale Indonesia's shares will be funded using debt.

These conditions will increase the level of Inalum's consolidated debt to US$ 6.5 billion and its gross adjusted leverage to 8.0 times in 2020, according to a press release quoted from Kontan.co.id.

Moody's gave the "Baa2" rating on the planned bonds. "This new bond will extend the profile of Inalum's debt maturity," Dhruv said. (AM/AR)

© 2024 - IDN Financials - All Rights Reserved.