PEFINDO assigned an idA rating to Bond I Year 2024 issued by PT Merdeka Battery Materials Tbk (MBMA) with a value of IDR 1.5 trillion. Simultaneously, PEFINDO affirmed the idA rating for MBMA. The outlook for the company's rating is stable.
The rating reflects MBMA's vertically integrated operations, strong synergies with the group and strategic partners, and adequate mining reserves and resources. However, the ratings are limited by the risk of developing new projects and exposure to fluctuations in nickel prices.
PEFINDO stated that the ratings could be upgraded if MBMA strengthens its business diversification, including adding downstream projects in the electric vehicle battery raw material value chain business.
The ratings could also be upgraded if MBMA successfully operates its new projects on time and generates higher revenue than projected by improving profitability indicators, which will positively impact its financial profile on a sustainable basis.
However, PEFINDO also emphasized that the ratings could be downgraded if MBMA records lower revenue and profit margins than projected due to the non-achievement of performance targets from the new projects or a significant decline in nickel prices. The ratings could also be downgraded if MBMA adds substantial debt to finance new projects without being offset by higher revenues and EBITDA.
MBMA is the parent company of several entities operating in the Indonesia Morowali Industrial Park (IMIP), including three Rotary Kiln Electric Furnace (RKEF) smelters, one nickel matte converter, and an Acid Iron Metal (AIM) project, as well as a nickel mine in Konawe.
The company is also working on building High Pressure Acid Leaching (HPAL) plants at IMIP and Konawe. Data as of September 30, 2023, shows that MBMA's shareholders consist of PT Merdeka Energi Nusantara (50.03%), Huayong International (Hong Kong) Limited (7.55%), Winato Kartono (5.43%), and the rest is owned by the public (27.57%).
Image source: doc. PT Merdeka Battery Materials Tbk (MBMA)
Source: https://www.emitennews.com/news/pefindo-sematkan-ida-obligasi-merdeka-bettery-mbma
