This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Medco Energi Upgraded to BB-
April 30, 2024
Medco Energi was upgraded to BB- from B+ by Fitch on the back of the improvement in its “1P reserve life to around eight years by end-2023” from 6.5Y in 2022. Fitch expects growth in Medco’s organic capex, and recent acquisitions like the Oman Block 60 to support 1P reserve life above 7Y over the next three years. Medco has budgeted capex of ~$1.3bn over the next three years, mostly for developments. Fitch also notes that Medco’s earnings are less sensitive to oil price changes and thus has cashflow stability. Amid the improving financials, strong operating profile and reserves potential, the Indonesian O&G group’s acquisition focus still remains an “event risk” as per Fitch.
Medco’s dollar bonds were trading stable. Its 6.375% 2027s were trading stable at 96.8, yielding 7.71%.
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.