Moody's may cut Bumi Resources

Moody's Investors Service said it placed under review for possible downgrade its Ba3 corporate family rating on PT Bumi Resources Tbk. and on the senior secured bond issued by Bumi Capital Pte. Ltd., which is wholly owned and guaranteed by Bumi.

The action has been prompted by the company's eroded financial metrics as well as heightened liquidity and refinancing risk at the holding-company level, Moody's said.

Its 2009 leverage was materially higher than expected, as such downward rating triggers were breached and headroom under covenants eroded, the agency said.

While Moody's said it expects metrics to improve over the course of 2010, they still remain weaker than anticipated.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.