Moody's rates Humpuss bond Baa1.id

Moody's Investors Service said it assigned a foreign-currency corporate family rating of B2 to PT Humpuss Intermoda Transportasi TBK and a provisional B2 senior unsecured rating to the proposed bonds to be issued by Humpuss Sea Transport Pte. Ltd.

Moody's downgraded the domestic secured bond rating to Baa1.id from A3.id.

The outlook is stable. This concludes the review that began on March 10.

Proceeds will be used to fund deposit payments for the bareboat charter obligations for four panamax bulk carriers.

"The B2/Baa1.id ratings reflect [the company's] less aggressive business plan to defer its capital expenditures for the fleet expansion, making it more manageable relative to its financial strength," Peter Choy, a Moody's vice president, said in a written statement.

"However, its expansion into the dry bulk market will increase the execution and financial risk of the company," Choy noted.

The issuer's adjusted debt-to-EBITDAR ratio is about 4.8 times to 5.2 times.

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