S&P affirms Medco Energi

Standard & Poor's said it affirmed its B+ corporate credit rating on PT Medco Energi Internasional Tbk.

The outlook is negative.

The rating on Medco takes into account its aggressive financial risk profile, short- to medium-proved reserves life with large drilling and investment requirements, concentration of reserves and production in a single block and cyclical nature of the industry, S&P said.

Nevertheless, the agency said the rating benefits from Medco's established favorable cost structure and a degree of insulation from currency instability and sovereign debt risks.

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