Pefindo: J Resources Nusantara’s maturing MTN rated “idA”

(22 December 2020)--PEFINDO has affirmed its “idA” rating for PT J Resources Nusantara (JRES)’s MTN IV Year 2018 of IDR300 billion maturing on February 15, 2021. JRES plans to repay its maturing MTN using the proceed from Shelf Registered Bond I Phase VII Year 2020 of IDR384 billion which will be issued by its parent company, PT J Resources Asia Pasifik Tbk.

Debt security rated idA indicates that the issuer’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian issuers, is strong. However, the issuer’s capacity is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated issuers.

PT J Resources Nusantara was established in 2003 under the name PT Bara Kutai Energi. Its operations cover the exploration, mining, and processing of gold. It has a geographically diverse portfolio of assets across Indonesia and Malaysia, specifically in Penjom, Malaysia; Seruyung, North Kalimantan; and Bakan, Lanut, Pani, Doup, Bolangitang, and Bulagidun in North Sulawesi. As of September 30, 2020, it had three producing mines, two mines in the development stage, and two in the exploration stage. The Company’s shares were 99.9% owned by PT J Resources Asia Pasifik Tbk., the largest Indonesian listed gold producing company. (ends)