European Contagion Could Infect Bumi: Morgan Stanley
May 11, 2010
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Bondholders of coal giant PT Bumi Resources are at risk should the contagion from Europe’s debt crisis spread to Asia, according to investment bank Morgan Stanley.
Bumi was identified by the investment bank as having low “funding flexibility,” Viktor Hjort, Morgan Stanley’s Hong Kong-based credit strategist, wrote in a note to clients. “In a contagion environment credit-default risk narrows down to a single factor — access to funding,” he said.
Bumi Resources, which has $638 million of debt due by the end of 2012, had its share-price estimate cut to Rp 2,300 from Rp 2,400 by Goldman Sachs last month after profit declined. Bumi aims to “reduce leveraging by more than $1 billion” this year, said Dileep Srivastava, the Bakrie Group coal miner’s head of investor relations.
Bloomberg
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violence is increasingly the first resort in Indonesia these days. sorry president but this blood letting is on your hands -
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Nowhere is safe in Indonesia....Suharto must be crying in his grave. Where is the new budget to build the 1 million man jails? -
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I an guessing Anton Sitorus didn't say Premium office has now already reached $3,000 per square meters! The continued decline of the jakarta globe -
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Tit for tat? This is self-centred approach worthy of Indonesia of late. -
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Once people start believing, they stop thinking. The Minister's blinkered statement would be funny if it wasn't so sad! -
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Singaporeans need to basically boink more and have kids :P -
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@cattlecarnage - actually JG runs the very same article on this site: http://www.thejakartaglobe.com/commentary/ask-atheists-christians-shii
