JAKARTA. Moody's Investor Services has boosted the rating for securities of PT Bumi Resources Tbk (BUMI), following its private placement of 200 billion shares, the whole of which will be claimed by Salim Group.
In its latest release, Moody's bumped up the rating of series B senior bonds issued by BUMI's subsidiary, Eterna Capital Pte Ltd, from CA to Caa3. Eterna Capital is a subsidiary registered in Singapore, recording total assets of USD 883 million in late June 2022.
Said rating is deemed low. However, Moody's highlighted that the latest Caa3 rating is better than Ca rating, which strongly indicates repayment failure.
The Caa3 rating is also applied to BUMI as a company and series A and B senior bonds issued by Eterna Capital. On the same occasion, Moody's also updated the outlook of BUMI from "negative" to "under review".
Maisam Hasnain, Vice President and Senior Analyst of Moody's, mentioned that Moody's will continue to monitor the progress of BUMI's financial obligation before upgrading the rating of it's securities.
"The next review of Moody's will focus on BUMI's obligation settlement after securing the extra money from the upcoming private placement, its financial policy, and its future plan after gaining new shareholders," he added.
As mentioned by idnfinancials.com before, BUMI has been granted approval regarding its plan of issuing 200 billion shares through a private placement scheduled for October 11, 2022. Through this corporate action, BUMI might potentially collect fresh funds of USD 1.6 billion. (KR/ZH)