S&P lowers rating on Bumi's US$700m notes

Singapore

STANDARD & Poor's Ratings Services has lowered its long-term issue rating on the US$700 million senior secured notes guaranteed by Indonesia-based coal mining firm PT Bumi Resources to 'D', owing to a missed interest payment. But S&P removed the rating from CreditWatch, where it was placed with negative implications on Aug 13.

"We lowered the issue rating on the US$700 million notes because Bumi Resources, the guarantor, has failed to make the interest payment within the 30-day grace period allowed under the bond indenture," explained credit analyst Vishal Kulkarni. The notes, due in 2017, were issued by Bumi Investment.