Moody's affirms Indika Energy

Moody's Investors Service said it affirmed its B2 corporate family rating for PT Indika Energy Tbk., along with its B2 rating for the $250 million senior secured five-year bond issued by Indo Integrated Energy BV and guaranteed by Indika.

The outlook is stable.

The affirmation follows Indika's plans to acquire an 81.95% stake in mining contractor PT Petrosea Tbk. The cost is estimated at $102.3 million, which Indika will fund from its cash on hand.

In the nine months to September 2008, Petrosea recorded revenues of $84.5 million and EBITDA of $25 million. Debt outstanding stood at $42.6 million on a fully consolidated basis. After the acquisition, Indika will have a pro forma debt-to-EBTIDA ratio of about 3.1x, which remains low for the rating level, Fitch said.

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