Fitch: Bumi Serpong notes BB-

Fitch Ratings said it assigned an expected BB- rating to PT Bumi Serpong Damai Tbk.'s proposed dollar-denominated senior unsecured notes due in 2023.

The notes will be issued by the company’s wholly owned subsidiary, Global Prime Capital Pte Ltd. and guaranteed by Bumi and its subsidiaries.

The notes are rated at the same level as Bumi's senior unsecured rating as they represent the company's unconditional, unsecured and unsubordinated obligations, Fitch explained.

Part of the proceeds will be used to refinance its existing $225 million 6¾% senior unsecured notes due in 2020 and any balance to expand its businesses and for working capital, the agency said.

The proposed notes, which have a seven-year tenor, will lengthen the company's debt maturity profile, Fitch said.

The agency also said it expects Bumi’s financial profile to remain within the parameters of its BB- long-term issuer default rating based on the company's appetite for raising additional debt via this issuance.

The ratings reflect the company’s improved sales, which increased 8% year-over-year in the second quarter of 2016, Fitch said.

© 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.