Mandiri, BNI, Medco's ratings stable: S&P
Mandiri, BNI, Medco's ratings stable: S&P
The Jakarta Post, Jakarta
Standard & Poor's revised Thursday the outlook on the long-
term counterparty credit ratings of state owned bank PT Bank
Mandiri and the foreign and local currency counterparty credit
ratings of publicly-listed state-owned bank PT Bank Negara
Indonesia (BNI) to stable from negative.
The credit rating agency said in a statement that the outlook
revisions followed the outlook revision by the agency on
sovereign ratings of the Republic of Indonesia to stable from
negative.
S&P also affirmed its single-'B'-minus long-term counterparty
credit and senior unsecured debt ratings, and its 'C' short-term
counterparty credit and triple-'C' subordinated debt ratings on
Bank Mandiri.
It also affirmed its single-'B'-minus long-term local and
foreign currency counterparty credit and senior unsecured debt
ratings, and its 'C' short-term local and foreign currency
counterparty credit ratings on BNI.
S&P raised Thursday Indonesia's long-term and short-term
foreign currency rating to triple-'C' and 'C', respectively, from
'SD' (selective default), and assigned the foreign currency
ratings a stable outlook.
In another press statement, the agency stated that the outlook
on publicly-listed energy firm PT Medco Energi International
remained stable at B plus.
It said Medco's financial results for the first half of 2002
are within its expectations, and do not affect the company's
ratings.
Fiscal year 2002 is the first year the company reports its
financial results in U.S. dollars.
For the first six months of 2002, revenue and net income rose
14 percent and 50 percent to US$207.7 million and $58.0 million
from the preceding period, despite lower realized oil prices. The
revenue rise was attributable to higher sales volumes for oil and
methanol, as well as improved onshore rig utilization and daily
rig rates.
Notwithstanding higher operating expenses, which led to
operating margin deteriorating to 56 percent from 67 percent, net
income was higher in the first half of 2002 due to the provisions
made for doubtful receivables and foreign exchange losses in the
first half of 2001, S&P said.
Although interest expenses were higher after the issuance of
$100 million notes in early-2002, EBITDA interest cover remained
relatively strong at 31.2 times. Total debt-to-capital was 17
percent at June 30, 2002, healthy for the rating level.
Furthermore, cash of $98 million provides the company
considerable financial flexibility to fund its aggressive
drilling program and asset acquisitions.