S&P rates PT Bayan Resources B+

S&P said it assigned its B+ long-term issuer credit rating to PT Bayan Resources Tbk. The outlook is stable.

Bayan is an Indonesia-based holding company that has majority ownership in operating companies with coal mining concessions in Indonesia.

“The rating reflects Bayan's single mine and mineral exposure, and limited scale relative to global coal producers. The company faces the risk of fluctuations in working capital during the dry season, and its credit ratios are sensitive to volatility in coal prices,” S&P said in a news release.

“Mitigating these risks are the sound cost position and long reserve life of Bayan's mines, the company's adequate liquidity, and the likelihood it will continue to generate positive discretionary cash flows through 2020.”

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