TEMPO.CO, Jakarta - Ratings agency Pemeringkat Efek Indonesia (Pefindo) has downgraded the bond rating of state miner Aneka Tambang (IDX: ANTM), also known as Antam, from idA- to idBBB+. Antam's new rating is valid until September 2017.
According to Pefindo's expose as quoted by Bisnis.com, Monday, September 19, the rating downgrade was caused by nickel prices that went lower than prediction despite Antam's production cost decline.
Pressure also came from the mineral export ban, which eroded Antam's profit, as they booked high debts to finance a smelter construction.
Despite downgrading Antam's rating, Pefindo changed the company's outlook from negative to stable following the company's improved gearing ratio for June 2016. The improvement was the result of additional funds than came from a rights offering proceeds and increased land asset valuation.