AN integrated energy and investment company in Indonesia, PT ABM Investama Tbk (ABMM), received a B1 credit rating affirmation with a stable outlook for senior debt securities worth US$160 million from the United States (US) financial institution and credit rating institution, Moody’s Ratings.
This Moody’s rating shows ABMM’s strong credit metrics despite the operational challenges faced by the company in the first half of 2024. Moody’s also appreciates ABMM’s corporate action in accessing domestic funding which ABMM recently took refinancing And reprofiling credit facility from PT Bank Mandiri (Persero) Tbk amounting to US$395 million.
Refinancing And reprofiling This is one of the reasons why Moody’s gave ABMM a B1 rating with a stable outlook. The provision of credit facilities from the largest state-owned bank in Indonesia is considered very profitable because it extends the term of the credit facility and reduces interest expenses, thereby strengthening the financial balance and providing additional cash flow flexibility for ABMM.
“We are pleased with Moody’s affirmation of giving the debt a B1 rating. This shows that our credit position will continue to be stable in the future. “We achieved this success thanks to the support of all stakeholders, who are always committed to supporting our steps in preparing ourselves to support sustainable business growth in the future,” said ABMM President Director, Achmad Ananda Djajanegara, Tuesday (12/11).
Andi, Achmad Ananda Djajanegara’s nickname, added that Moody’s rating confirms ABMM’s commitment to transparent and prudent management.
Apart from that, this ranking is an international recognition that the company, which has been operating for more than 16 years, is committed to management good corporate governance (GCG), always focused on operational excellence, and committed to principles environmental, social, And governance (ESG).
“We hope that this will strengthen the trust and support of stakeholders, including investors, for ABMM, which will ultimately have a positive impact on the company so that it can continue to grow so that it can establish itself as a leading company in the energy sector,” concluded Andi.
For your information, Moody’s Ratings is a large world financial institution that operates in credit ratings, research and risk analysis. In its rating system, Moody’s gives grades ranging from Aaa to C, namely Aaa is the highest grade and C the lowest. (D-2)
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**Interview with Mr. Aditya Wibowo, CFO of PT ABM Investama Tbk (ABMM)**
**Interviewer:** Thank you for joining us today, Mr. Wibowo. PT ABM Investama recently received a B1 credit rating affirmation from Moody’s with a stable outlook. How significant is this rating for your company?
**Mr. Wibowo:** Thank you for having me. The B1 credit rating from Moody’s is a significant milestone for PT ABM Investama. It reflects our strong credit metrics and financial stability, especially in the face of operational challenges we faced during the first half of 2024. This rating not only underscores investor confidence but also enhances our credibility in the financial markets.
**Interviewer:** Moody’s has highlighted your recent corporate actions, particularly the refinancing and reprofiling of your credit facility with Bank Mandiri. Can you explain what this entails and its impact on ABMM?
**Mr. Wibowo:** Certainly. The refinancing and reprofiling of our credit facility, amounting to US$395 million, were strategic moves aimed at extending the maturity of our debt and reducing interest expenses. This has improved our financial balance significantly, providing us with additional cash flow flexibility. It enables us to allocate resources more effectively and supports our long-term growth objectives.
**Interviewer:** Given the operational challenges in early 2024, what steps is ABMM taking to ensure continued financial stability?
**Mr. Wibowo:** We’ve implemented several measures to navigate these challenges, including optimizing our operational efficiency, focusing on cost management, and improving cash flow. Additionally, enhancing our strategic partnerships and exploring domestic funding opportunities are also part of our plan. We’re confident that these efforts will bolster our resilience and adaptability in a dynamic market.
**Interviewer:** Lastly, what are your expectations for ABMM in the near future?
**Mr. Wibowo:** We are optimistic about the future. Maintaining a B1 credit rating with a stable outlook is just the beginning. Our focus will remain on sustainable growth, operational excellence, and enhancing shareholder value. We believe that with the right strategies, ABMM is well-positioned to thrive in the evolving energy landscape in Indonesia.
**Interviewer:** Thank you for your insights, Mr. Wibowo. We look forward to seeing how ABMM continues to navigate the market.
**Mr. Wibowo:** Thank you for having me. It’s been a pleasure.