Fitch: Berau Coal on evolving watch

Fitch Ratings said it placed PT Berau Coal's long-term foreign- and local-currency issuer default ratings of B+ and national long-term rating of A(idn) on Rating Watch evolving, along with the B+ rating on the $325 million senior notes due 2011 issued by Empire Capital Resources Pte Ltd. and guaranteed by Berau.

The action follows Berau's offer via a notice of redemption to redeem the senior notes due 2011 on Dec. 28, 2009 prior to their maturity, Fitch said.

While Berau has not communicated the reason for the early redemption, Fitch said it believes that it is due to a potential change in Berau's controlling shareholder.

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