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Jakarta Post

Radiant Utama Interinsco'€™s medium term notes get [Idr] BBB+ rating

  • The Jakarta Post

    The Jakarta Post

Jakarta | Mon, July 8 2013 | 06:12 pm

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.

'€œThe 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.

'€œHowever, 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.

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