01.16.08, 12:04 AM ET MUMBAI (Thomson Financial) - Moody's Investors Service upgraded PT Aneka Tambang Tbk's (Antam) corporate family rating to 'Ba3' from 'B1', citing the Indonesian company's strengthened credit fundamentals -- driven by a strong base metals industry.
'Moreover, unprecedented levels of strong cash have placed Antam in an enviable net cash position, amounting to about 460 mln usd as of Sept 30 2007,' the agency said, adding that this gives it significant leverage to undertake various acquisitions and/or downstream projects into alumina processing and even further downstream into stainless steel production. 'All such activities will broaden its long-term earnings base,' Moody's (nyse: MCO - news - people ) said. That said, the rating also recognizes Antam's small size and limited diversity with close to 90 pct of revenues from nickel production, as well as its aggressive debt-funded acquisitions and plans to invest in gold reserves and its pipeline of downstream projects. 'The final Ba3 rating further factors in medium support from the Indonesian government, given its 65 pct ownership,' the agency added. [EMAIL PROTECTED] jro
