The Jakarta Post
Major international rating agencies Standard & Poor’s and Moody’s Investors Service downgraded their long-term corporate ratings of Indonesia’s largest thermal coal producer PT Bumi Resources (BUMI) on Wednesday amid investigations into irregularities within the company.
The two rating agencies said that the investigation of the alleged irregularities could weaken BUMI’s ability to refinance its mounting debts.
S&P said it lowered its long-term corporate rating of BUMI by one step to “B+” from “BB-”. Meanwhile, Moody’s Investors Service revised the outlook on the company to negative from stable.
“The negative outlook reflects Moody’s concern that the lingering corporate governance issues at Bumi Resources will impact its ability to refinance its scheduled loan maturities of over US$300 million in 2013,” Moody’s vice president and sen...