Mandiri, BNI, Medco's ratings stable: S&P<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Standard & Poor's revised Thursday the outlook on the long-
\nterm counterparty credit ratings of state owned bank PT Bank
\nMandiri and the foreign and local currency counterparty credit
\nratings of publicly-listed state-owned bank PT Bank Negara
\nIndonesia (BNI) to stable from negative.<\/p>\n
The credit rating agency said in a statement that the outlook
\nrevisions followed the outlook revision by the agency on
\nsovereign ratings of the Republic of Indonesia to stable from
\nnegative.<\/p>\n
S&P also affirmed its single-'B'-minus long-term counterparty
\ncredit and senior unsecured debt ratings, and its 'C' short-term
\ncounterparty credit and triple-'C' subordinated debt ratings on
\nBank Mandiri.<\/p>\n
It also affirmed its single-'B'-minus long-term local and
\nforeign currency counterparty credit and senior unsecured debt
\nratings, and its 'C' short-term local and foreign currency
\ncounterparty credit ratings on BNI.<\/p>\n
S&P raised Thursday Indonesia's long-term and short-term
\nforeign currency rating to triple-'C' and 'C', respectively, from
\n'SD' (selective default), and assigned the foreign currency
\nratings a stable outlook.<\/p>\n
In another press statement, the agency stated that the outlook
\non publicly-listed energy firm PT Medco Energi International
\nremained stable at B plus.<\/p>\n
It said Medco's financial results for the first half of 2002
\nare within its expectations, and do not affect the company's
\nratings.<\/p>\n
Fiscal year 2002 is the first year the company reports its
\nfinancial results in U.S. dollars.<\/p>\n
For the first six months of 2002, revenue and net income rose
\n14 percent and 50 percent to US$207.7 million and $58.0 million
\nfrom the preceding period, despite lower realized oil prices. The
\nrevenue rise was attributable to higher sales volumes for oil and
\nmethanol, as well as improved onshore rig utilization and daily
\nrig rates.<\/p>\n
Notwithstanding higher operating expenses, which led to
\noperating margin deteriorating to 56 percent from 67 percent, net
\nincome was higher in the first half of 2002 due to the provisions
\nmade for doubtful receivables and foreign exchange losses in the
\nfirst half of 2001, S&P said.<\/p>\n
Although interest expenses were higher after the issuance of
\n$100 million notes in early-2002, EBITDA interest cover remained
\nrelatively strong at 31.2 times. Total debt-to-capital was 17
\npercent at June 30, 2002, healthy for the rating level.<\/p>\n
Furthermore, cash of $98 million provides the company
\nconsiderable financial flexibility to fund its aggressive
\ndrilling program and asset acquisitions.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mandiri-bni-medcos-ratings-stable-sp-1447893297",
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"sponsor": "Okusi Associates",
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