Fitch affirms BUMA

Fitch Ratings said it affirmed PT Bukit Makmur Mandiri Utama's (BUMA) long-term foreign-currency issuer default rating at BB- and national long-term rating at AA-(idn).

The outlook remains stable.

BUMA's ratings reflect its position as the second-largest coal mining contractor in Indonesia, with an estimated market share of 17%, reciprocal established relationships with some of Indonesia's largest coal producers, and the visibility of its revenues, the agency said.

BUMA's ratings are constrained by indirect exposure to commodity cycles and by the highly capital intensive nature of its operations, Fitch noted.

The company's debt net of cash to EBITDA weakened to 3.6 times as of September from 2.9 times in 2010, according to the agency.

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