The Jakarta Post
Rating agency PT ICRA Indonesia (ICRA Indonesia) assigned a rating of [Idr] BBB+ with a stable outlook to the proposed Rp 125 billion medium-term notes (MTN) of PT Radiant Utama Interinsco Tbk (RUIS).
The rating indicates moderate credit quality relative to other domestic issuers, and the rated instrument carries higher-than-average credit risk.
'The rating is constrained by the deterioration of its financial profile ' most notably characterized by the high leverage, exposure to the competitive environment within oil and gas services sector and the project risk associated with its oil and gas exploration business,' PT ICRA corporate ratings manager-analyst Bayu Prasetyawan said in a press release.
RUIS' rating could move upwards if it can scale down its leverage through a successful implementation of its business plans while maintaining its working capital sufficiency.
'However, should the company fail to manage its expansion, or continue to employ its aggressive financial policies, the rating would come under downward pressure,' Bayu said.