Moody's lifts Gajah Tunggal

Moody's Investors Service said it upgraded the corporate family and senior secured ratings of PT Gajah Tunggal Tbk. to B2 from B3.

The outlook is stable.

The action follows the issuance of $500 million of bonds maturing in 2018 and early redemption of its bonds maturing in July 2014, totaling $413 million, according to the agency.

Moody's said it expects the company's debt-to-EBITDA ratio to stay below 3x.

The corporate family rating reflects the company's status as Southeast Asia's largest integrated tire manufacturer, and its balanced product and geographical sales mix, the agency noted.

The rating is constrained by the company's history of debt restructuring, and its exposure to cyclical raw material prices and foreign exchange movements, Moody's said.

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