Fitch rates Star Energy notes BB-

Fitch Ratings said it assigned a BB-(EXP) rating to Star Energy Geothermal (Wayang Windu) Ltd.’s proposed fully amortizing up to $650 million senior secured notes due 2033.

The outlook is stable.

Fitch said the project benefits from long-term contracts to use geothermal resources and sell electricity to the Indonesian state-owned power company PT Perusahaan Listrik Negara (PLN; BBB/stable).

The take-or-pay nature of the electricity sales contract with PLN eliminates most volume and merchant price risks.

Fitch said it expects the supply of geothermal resource to be reliable, subject to appropriate and timely well maintenance and drilling of new wells.

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