Moody's: Buma unchanged

Moody's Investors Service noted the recent news by PT Delta Dunia Makmur Tbk, parent of PT Bukit Makmur Mandiri Utama (Buma), that it has terminated negotiations with Recapital Investment Group for a possible share swap transaction at the Delta level. The termination of negotiations has no rating impact on Buma's Ba3 corporate family and senior secured bond rating, the agency said.

There should be no impact on Buma's business profile given that it already accounts for some 77% of Berau's coal production while Berau generates about 33% of Buma's revenues, Moody's said, and that the underlying contracts are medium-long term in nature.

Delta is currently 40% owned by a consortium led by Indonesian private equity firm, Northstar Equity Partners, the agency said. Moody's said it continues to have reservations regarding Northstar's long-term commitment to and strategy for the Delta/Buma business, given its role as a financial investor in the company.

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