Moody's: Bukit Makmur unchanged

Moody's Investors Service said there is no immediate impact on Bukit Makmur Mandiri's Ba3 corporate family rating from its signing of a $800 million senior secured loan facility and parent Delta Dunia's recent announcement of a rights issue of up to 1.529 billion common shares.

The outlook is stable.

The new loan facility provides Buma with greater financial flexibility as it extends its average loan life to five years, while widening covenant headroom, thereby facilitating a substantial expansion in capex in the medium term, the agency said.

The new loan facility, which comprises a $750 million seven-year term loan and a $50 million three-year committed revolving facility, does not have a free cash flow covenant, the agency added.

The proceeds from the loan facility will refinance Buma's existing bank debt and fund future capex.

Buma's ratings reflect the business risk and competitive position of the company versus others within its industry, the capital structure and financial risk of the company, the projected performance of the company over the near to intermediate term and management's track record and tolerance for risk, the agency added.

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