S&P downgrades Berau Coal

Standard & Poor’s said it lowered the long-term corporate credit rating on PT Berau Coal Energy Tbk. to B from BB-.

The outlook is negative.

The agency also said it lowered the long-term Asean regional scale rating on the company to axB+ from axBB.

S&P also said it lowered the long-term issue rating on the company’s senior notes to B from BB-.

The agency also said it removed all of the ratings from CreditWatch, where they were placed with negative implications in June.

The downgrades reflect an expectation that Berau Energy’s cash-flow adequacy ratios will be materially weaker than anticipated through 2015 following a sharp correction in coal prices over the past three months, S&P said.

In addition, Berau Energy’s failure to refinance its bonds maturing July 2015 and the lack of a firm timeline to complete the refinancing will heighten refinancing risk over the next 12 months, the agency 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.