JAKARTA. The Indonesian Securities Rating Agency (Pefindo) has assigned an idA rating to Bond II Year 2024 issued by PT Merdeka Battery Materials Tbk (MBMA), and confirmed the same rating for the bonds that have been issued.
Pefindo said the rating reflects MBMAs business activities, which are vertically integrated. In addition, the rating also reflects the fairly strong synergy between MBMA and a number of its strategic partners, as well as the companys adequate reserves and resources.
The rating can be raised if MBMA strengthens its business diversification, including by adding downstream projects in the electric motor vehicle battery raw material value chain business, said Pefindo, in its official statement.
On the other hand, the rating could also be lowered if MBMA records revenue and profit margins that are lower than projections, due to not achieving performance targets for a number of new projects. In addition, the rating may also be lowered if there is a significant decline in nickel prices.
For the record, MBMA is the parent company of a number of entities operating in the Indonesia Morowali Industrial Park (IMIP) and Konawe. The company currently has 3 nickel smelters and is still in the construction stage of the High Pressure Acid Leach (HPAL) factory. (KR/LM)