Fitch rates Golden Energy, notes B+

Fitch Ratings said it assigned Golden Energy and Resources Ltd. (GEAR) a B+ long-term issuer default rating with a positive outlook.

The agency also assigned an expected rating of B+(EXP) and a recovery rating of RR4 to the company’s proposed $300 million notes.

The notes are rated at the same level as Golden Energy’s issuer default rating as they constitute the direct, unsubordinated and unsecured obligations of the company.

At the same time, Fitch said it assigned Golden Energy’s coal mining subsidiary, PT Golden Energy and Mines Tbk. (GEMS), a B+ long-term issuer default rating and Fitch Ratings Indonesia assigned the company a national long-term rating of A(idn).

The outlook is positive.

“The ratings of both entities are based on the consolidated profile of the GEAR group,” Fitch said in a news release.

“The ratings reflect GEAR's strong financial profile, healthy reserve life, track record of production growth and the moderate sensitivity of its credit metrics to benchmark coal prices.”

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