RPT-Fitch:Star Energy Geothermal affirmed at 'B +' / Stable
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May 26 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed the Issuer Default Rating Long-Term Rating (IDR) Star Energy Geothermal (Wayang Windu) Limited (SEG) at 'B +'. Outlook is Stable. At the same time, Fitch has affirmed the senior debt (senior secured notes) of the company USD 350 million, which will mature in 2020 at 'B +' with a Recovery Rating (Recovery Rating) at 'RR4'
The ratings reflect the risks SEG innate geology of operations and expansion capital intensive. The ratings also measured considering the company's revenue, because the track record good operational performance, as well as energy sales contract (ESC) term long.
Factors Ranked movers
Terukurnya Income: Sales SEG based on ESC that ended in 2036 PT State Electricity Company (Persero) (PLN; BBB-/Stabil), which contains rate adjustment for exchange rate changes and inflation. SEG has never faced serious delay in payment of PLN in 2004.
Stable Operations: SEG operates by selfishness average net capacity factor more than 95% - above the industry average - since the start of operations in the , 2000. Geothermal resources, which is verified by an independent, capable support large power plant 287MW (227MW capacity is now) until 2039.
Geological risk: The ratings reflect the risks of geological SEG in operating in a seismically active area, especially with the location of a single operation. will However, this risk, reduced to a certain level by the insurance policy covers most of the costs of generation, as well as business interruption during 24 months.
Expansion uncertain: The ratings SEG limited by uncertainties associated with development potential. Capital expenditures for the addition capacity with a large enough scale can be substantial in relation to the SGE balance. Geothermal sources SEG mundukung new capacity additions and the company continues to conduct a feasibility assessment of the capacity addition Further, especially in connection with the negotiation rate increase by PLN and excavations associated with rock permeability under surface. Continuación...