JUNE 10, 2013

CORPORATES

NEW ISSUER REPORT

PT Apexindo Pratama Duta Tbk

Indonesia

Table of Contents:

Summary

SUMMARY
1
CORPORATE PROFILE
2
SUMMARY RATING RATIONALE
3
RATING OUTLOOK
3
WHAT COULD RAISE THE RATING
3
WHAT COULD LOWER THE RATING 3
KEY RATING DRIVERS
4
KEY RATING CONSIDERATIONS
4
Strong market position supported by
protective regulations on local content
4
High revenue visibility with large
contracted order book in the next 2-3 years 5
Small operating fleet exposed to
geographic concentration and cyclicality in
oil and gas sector
6
Significant customer concentration
mitigated by strong counterparty credit
quality
7
High leverage position expected to improve
in the next 2 years
8
LIQUIDITY
9
GLOBAL PEERS: COMPARISON
WITH PARKER DRILLING, PACIFIC
DRILLING, ATWOOD OCEANICS,
SHELF DRILLING, HERCULES
OFFSHORE AND HILONG
11
MAPPING TO RATING
METHODOLOGY
12
APPENDIX I: APEXINDOS
HISTORICAL FINANCIAL SUMMARY
(AS ADJUSTED)
13

Analyst Contacts:
SINGAPORE

+65.6398.8308

Vikas Halan
+65.6398.8337
Vice President - Senior Analyst
vikas.halan@moodys.com
Rachel Chua
Associate Analyst
rachel.chua@moodys.com

+65.6398.8313

Philipp L. Lotter
+65.6398.8335
Managing Director - Corporate Finance
philipp.lotter@moodys.com

On 16 September, we assigned a provisional Ba3 corporate family rating to PT

Apexindo Pratama Duta Tbk (Apexindo) with a stable outlook. We also assigned
a provisional Ba3 rating to the companys proposed senior secured notes.
If the transaction is not completed, or if the amount of the bond issuance differs
materially from our expectations, the current ratings may not be maintained, as
our base case assumption is that Apexindo will raise financing via the bond to
refinance $375 million of borrowings which mature within the next 12 months.
Therefore, the corporate family rating is provisional and subject to issuance of the
bond.
The key rating driver of Apexindos credit profile is its strong market position
in the Indonesian contract drilling industry. With 4 swamp barges and 2 jack-up
rigs, it controls the largest fleet of offshore drilling assets in Indonesia. The company
also benefits from protective regulations in Indonesia that require upstream
exploration and production (E&P) companies to use suppliers with local content.
This affords Apexindo some protection from international competitors.
The rating also incorporates the companys high revenue visibility over the next
2-3 years, given its large contracted order book of $762 million (as of March 2013) - which is equivalent to over 3.6x of its revenue in 2012 -- and its strong track record
of operational safety.
We believe that company will face significant contract renewal risk in 2015-16
when the contract for its two jack-up rigs which together account for about 40% of
revenue ends. However, its track record of renewing contracts has been good and
over the last 5 years, utilization of its offshore vessels has been around 90%.
Apexindos small operating fleet is exposed to significant geographic
concentration as all its 15 vessels -- both onshore and offshore -- are deployed in
Indonesia. The small size of its fleet also heightens exposure to the highly cyclical
nature of the oil and gas E&P industry.
Apexindo is highly concentrated to a single customer, namely Total S.A. (Aa1
negative) which accounted for 62% of 2012 revenues and 66% of its 1H 2013
revenues. This is partly mitigated by Totals strong counterparty credit quality and
favorable contract termination clauses.

CORPORATES

Apexindos leverage in 2012 was high for its rating, as reflected by adjusted debt/EBITDA
of 4.3x, adjusted debt/capitalization of 67.4% and EBIT/interest of 1.9x. With three vessels
scheduled for certification and dry docking in 2013, we expect its credit metrics to remain at
similar levels this year, but to improve in 2014, such that adjusted debt/EBITDA will decline
below 4.0x and EBIT/interest will be at 2.5x.

Corporate profile
PT Apexindo Pratama Duta Tbk (Apexindo) is Indonesias leading provider and operator of rigs
for the oil, gas, coal-bed methane (CBM) and geothermal drilling industries. It has been in business
since 1984 and operates a fleet of 8 onshore rigs, 6 offshore rigs and one floating production
storage and offloading (FPSO) vessel.
The company is the only local offshore rig provider in Indonesia. For the last twelve months ended
in June 2013, Apexindo generated revenues totaling $237 million and EBITDA of $133 million.
The offshore segment contributed approximately 70% of revenues while the remaining 30% was
from onshore activities.
Listed on the Jakarta Stock Exchange, Apexindo is 87.3% owned by Apexindo International Pte.
Limited (unrated), which in turn is 96.1% owned by PT Apexindo Energi Investama (unrated), a
100% subsidiary of PT Aserra Capital (unrated).
EXHIBIT 1

Corporate Structure
PT Aserra Capital

99.99%

PT Apexindo Energi Investama

Others

3.93%

3.83%

96.07%

Apexindo International Pte Ltd

Public

8.88%
87.28%

PT Apexindo Pratama Duta Tbk

As of 15 May 2013
Source: Company data

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CORPORATES

Summary rating rationale

The Ba3 corporate family rating reflects the companys competitive market position in the
Indonesian contract drilling industry, which benefits from protective regulations that requires
upstream oil and gas companies to use a proportion of local content in their exploration and
production (E&P) activities. This affords Apexindo protection from much larger international
competitors.
The rating also incorporates the companys high revenue visibility, with a large contracted order
book of $762 million (as of March 2013), which is equivalent to over 3.6x of the companys
revenues in 2012, and its strong track record of operational safety.
The rating, however, is constrained by the small operating fleet, geographic concentration in
Indonesia, exposure to the highly cyclical nature of the oil and gas E&P industry, concentrated
exposure to a single but high quality counterparty, namely Total S.A., and the companys high
financial leverage.

Rating Outlook
The outlook on the rating is stable, reflecting our expectation that the company will refrain from
making any debt-funded acquisitions, and that it will continue to perform on all its contracts,
maintaining a high utilization level. The stable outlook also reflects our expectation that the firm
will successfully renew its contracts with high quality counterparties.

What Could Raise the Rating

Upward rating pressure is limited, but may evolve if Apexindo: 1) successfully renews its contracts
at more attractive rates, 2) increases its equity base and uses the proceeds to expand its fleet, or 3)
increases its revenues and EBITDA, such that its credit metrics improve.
Credit metrics that may lead to an upgrade of the rating include adjusted debt/EBITDA below 3.0x
and EBIT/interest exceeding 3.5x, on a sustained basis.

What Could Lower the Rating

The Ba3 corporate family rating may come under pressure if: 1) the utilization rate of the
companys vessels falls due its operational challenges or because of its inability to renew its
contracts when they expire, or 2) the company changes its policy and embarks on a debt funded
fleet expansion program.
Credit metrics that would indicate downward pressure on its rating include adjusted debt/EBITDA
in excess of 4.0x and EBIT/interest below 2.5x, in 2014.

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Key rating drivers

Strong market position supported by protective regulations for local content

High revenue visibility with large contracted order book for the next 2-3 years

Small operating fleet exposed to geographic concentration and cyclicality in the oil and gas
sector

Significant customer concentration mitigated by strong counterparty credit quality

High leverage position expected to improve in the next 2 years

Key Rating Considerations

Strong market position supported by protective regulations for local content
Apexindo has a strong competitive position in its domestic market, with the largest fleet of
offshore drilling assets -- 4 swamp barges and 2 jack-up rigs -- in Indonesia. In particular, the
company is the only local offshore rig operator in Indonesia and owns 4 of the 5 swamp barges in
the country. As of May 2013, the Indonesian offshore market comprised 15 drilling contractors and
29 assets.
As shown in Exhibit 2, the offshore segment contributed approximately 72% of Apexindos
revenues, while 24% was derived from onshore activities in 2012. Although there are more players
in the onshore market, when compared with the number of offshore providers, the company
maintains a 60% domestic market share of high-powered (larger than 2,000 horsepower) rigs.
EXHIBIT 2

Apexindos onshore and offshore revenue distribution

Onshore

Offshore

Unallocated

100%
90%
80%
70%

60%

75%

76%

75%

76%

72%

2008

2009

2010

2011

2012

50%
40%
30%
20%
10%
0%

Source: Company data

Operating since 1984, the companys strong market position is further enhanced by its excellent
track record in safety and productivity.
Apexindo benefits from protective regulations in Indonesia that require upstream exploration and
production (E&P) companies to use suppliers with local content, meaning that such suppliers keep
at least 35% of their revenues in the country. As a local drilling contractor, the company easily
fulfills the regulatory requirement of local content. Moreover, it operates in a market where there
are a limited number of players with the capability to compete.

JUNE 10, 2013

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CORPORATES

Moreover, Apexindo would benefit further if the government increases the local content
requirement above 35% as planned, given international competitors would likely face far more
difficulties meeting the raised threshold.

High revenue visibility with large contracted order book for the next 2-3 years
Apexindos vessels are typically contracted for 2-3 years, which ensures a high level of utilization,
reduces day-rate volatility, and maintains a clear view of expected revenues and cash flows. As of
May 2013, 13 of its 15 vessels were contracted, with the value of its remaining contracts (as of
December 2012) at over 3.6x that of its revenue in 2012.
Of the 13 contracted vessels, 4 have contracts ending in 2013-14, 8 have contracts ending in 201516, while the remaining one will end its contract in 2017. The detailed contract expiries of its
vessels are shown in Exhibit 3.
EXHIBIT 3

Apexindos contracted order book in 2013-16

Fleet

2013

2014

2015

2016

O ffshore
M aera
Raisis
Raissa
Yani
Raniworo
Soehanah
SeaGood 101
O nshore
Rig 2
Rig 4
Rig 5
Rig 8
Rig 9
Rig 10
Rig 14
Rig 15

Source: Company data

The company will face its highest levels of contract renewal risk and day-rate volatility during late
2015 and early 2016, when the contracts for its 2 jack-up rigs -- Soehanah and Raniworo -- are due
to be renewed. However, we draw comfort from its strong track record in securing and renewing
long-term contracts with key customers, owing to its strong safety record. Historically, its vessel
utilization rates have been high, with averages of approximately 56% and 89% for its onshore and
offshore segments, respectively.

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EXHIBIT 4

Apexindos historical rig utilization rates

Onshore

Offshore

FPSO

100%
90%
80%
70%

60%
50%
40%
30%
20%
10%
0%
2008

2009

2010

2011

2012

5-year average

Source: Company data

However, the contract renewal process is a key risk for the company as each renewal is awarded
only after a tender process. Nonetheless, because the bids only qualify if they meet the localcontent requirement, and given that Apexindo is the only jack-up rig provider in Indonesia that can
meet the minimum 35% local content requirement, the company has a higher rate of success in the
tender process than its international peers.

Small operating fleet exposed to geographic concentration and cyclicality in the oil
and gas sector
With a fleet of 15 vessels generating annual revenues of $237 million (LTM June 2013), Apexindo
is one of the smallest contract drillers that we rate. Its small fleet heightens exposure to the
cyclicality of the oil and gas E&P industry. All but 2 of its rigs -- which are deployed for
geothermal drilling -- are used for oil and gas, and CBM exploration and development.
EXHIBIT 5

Apexindos operating fleet of 15 vessels

JUNE 10, 2013

SEPTEMBER 2008

Rig Name

Type

Current Customer

Day Rate (USD)

Maera

Swamp Barge

Total

72,000

Raisis

Swamp Barge

Total

60,000

Raissa

Swamp Barge

Total

58,150

Yani

Swamp Barge

Total

60,000

Raniworo

Jack-up

Total

115,000

Soehanah

Jack-up

Total

155,750

SeaGood 101

FPSO

Santos

34,250

Rig 2

Onshore

Pan Orient

26,500

Rig 4

Onshore

Chevron

37,500

Rig 5

Onshore

VICO[1]

38,580

Rig 8

Onshore

Rig 9

Onshore

VICO[1]

38,000

Rig 10

Onshore

Supreme Energy

35,000

Rig 14

Onshore

Santos

18,900

NEW ISSUER REPORT: PT APEXINDO PRATAMA DUTA TBK

CORPORATES

EXHIBIT 5

Apexindos operating fleet of 15 vessels

Rig Name

Type

Current Customer

Rig 15

Onshore

Day Rate (USD)

[1] VICO Indonesia is a joint venture between BP p.l.c. (A2 stable) and ENI S.p.A. (A3 negative)
Source: Company data

In addition, Apexindos entire fleet of vessels -- both onshore and offshore is deployed in
Indonesia, which means significant geographic concentration risk. Consequently, a slowdown in
E&P activity in the country or unfavorable changes in regulatory rules will adversely impact
operations and profitability.
However, current E&P activity in Indonesia is healthy and remains large relative to the scale of the
company. Furthermore, given its established customer relationships and strong market position, we
believe Apexindos geographic concentration will not result in a lowering of its utilization levels
and that the risk of reform of the current regulatory framework is low.
Apexindos fleet operates largely in a low-risk environment. The vessels are used in shallow
waters on the Indonesian continental shelf and are well-suited for the domestic exploration
industry. According to the independent consultant, Infield Systems Ltd. (unrated), about 83% of
offshore reserves in Indonesia lie in shallow depths of less than 500 meters. Furthermore, the fleet
profile is stable as the company is not actively looking to expand and has no vessels on order.

Significant customer concentration mitigated by strong counterparty credit quality

Up to 76% of Apexindos order book is with Total S.A., the world's fifth-largest publicly traded
integrated oil & gas company by proved reserves, and the largest corporation in France. All of
Apexindos 6 offshore rigs (4 swamp barges and 2 jack-ups) are under long-term contracts to Total,
which operates a total of 10 rigs in Indonesia. As shown in Exhibit 6, some 62% of Apexindos
total 2012 revenues were derived from Total. For 1H 2013, Total accounted for about 66% of the
companys total revenues.
EXHIBIT 6

Apexindos key customers by revenue

Total

VICO

Chevron

Others

100%
90%
80%
70%

60%
50%
40%

72%

74%

2010

2011

62%

30%
20%
10%
0%

2012

Source: Company data

Total has a 21-year relationship with Apexindo and ranks Apexindo as one of its top 10 contractors
globally in terms of safety.

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In addition, contract termination risk is limited for Apexindo, as Total is liable to pay 50% of the
day rate for the remaining period of contracts, and the company can then re-deploy its vessels for
other charters.
However, some of the key production-sharing contracts of Total in Indonesia are up for renewal in
2017, some of which may not get renewed, in which case the Indonesian state owned company
Pertamina (Baa3 stable) - may take over such contracts. Given that Apexindo has already been
drilling in such fields, it is likely that the drilling contracts will be renewed with the counterparty
replacing Total. Nonetheless any delay or failure in renewal of contracts would be negative for
Apexindo.

High leverage position expected to improve in the next 2 years

Apexindos financial leverage has increased over the last 3 years as a result of a leveraged buy-out
by PT Aserra Capital in 2011, as shown in Exhibits 7 and 8. As of end-2012, financial leverage
was high for its rating, as reflected by: 1) adjusted debt/EBITDA of 4.3x, 2) adjusted
debt/capitalization of 67.4%, and 3) EBIT/interest of 1.9x, due to capital investments to refurbish
its vessels.
EXHIBIT 7

Apexindos adjusted debt to EBITDA

Debt/EBITDA
5.0x
4.5x
4.0x
3.5x

3.0x
2.5x
2.0x
1.5x
1.0x

0.5x
0.0x

2010

2011

2012

2011

2012

Source: Moodys Financial Metrics

EXHIBIT 8

Apexindos interest coverage position

EBIT/Interest

2.5x

2.0x

1.5x

1.0x

0.5x

0.0x

2010

Source: Moodys Financial Metrics

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Apexindos credit metrics in 2013 should stay at levels similar to 2012 despite higher day rates on
its recently renewed contracts. This is because of combination of a) three of the companys 6
offshore vessels are due for blow-out-preventer certification and dry docking, which will reduce
utilization levels and b) higher borrowings post the proposed refinancing. Consequently EBITDA
will only marginally improve in 2013.
However, credit metrics will improve from 2014 as vessel utilization will improve and the higher
day rates take full effect, such that adjusted debt/EBITDA will decline below 4.0x and
EBIT/interest will be at 2.5x. We do not expect any material investments or acquisitions in the next
12-18 months.

Liquidity
Apexindos liquidity position is weak, but will improve materially after issuance of its proposed
bond. As of June 2013, it had cash and cash equivalents of $12.5 million with $375 million of debt
maturing within the next 12 months. The maturing debt includes $344 million outstanding under
the companys term loan facility and the remaining represents amount outstanding under its
IDR300 billion bond, which are both due in 2Q 2014.
The proceeds of the proposed bond will be used to prepay the term loan and local currency bond.
Once the bond is issued, the earliest debt maturity would be when the proposed bond matures.
Apexindo does not have other committed facilities.
EXHIBIT 9

Apexindo will have adequate liquidity if the proposed bond issuance is successful
600

500

USD millions

400
300

200
100
0
Cash

CFO

Proposed bond

Debt repayment

Capex

Excess

Source: Companys annual report, Moodys estimates

Other Considerations
Leveraged buy-out by Aserra
Apexindos leverage has increased from adjusted debt/EBITDA of 2.5x in 2010 to 4.3x in 2012.
This was as a result of leveraged buy-out of the company by PT Aserra Capital in 2011.
Apexindo was owned by Medco Energi (B2 stable) until 2008, after which it was sold to PT Mitra
International Resources Tbk, which made the acquisition using $525 million of borrowings, in
multiple tranches, through an intermediate holding company, Mira International Holdings Pte. Ltd.

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By 2009, tranches of debt at Mira had experienced default, and which were then bought by Aserra,
in the secondary market over the course of 2010 and 2011. Aserra funded these purchases by $102
million of its equity and by borrowing another $350 million through Apexindo. The defaulted debt
was then converted into equity in Mira, making Aserra the effective owner of Apexindo.
Prior to the formal completion of the acquisition, in order to use the funds raised by borrowings at
Apexindo, Aserra issued short-term notes through its subsidiaries PT Apexindo Energi Investama
(AEI) and Apexindo International Pte. Ltd. (AIPL), which were subscribed by Apexindo. Funding
for purchase of these notes was raised by sale and leaseback of the jack-up rig Soehanah and a
term loan from Standard Chartered.
The notes that mature in 2028 carry a fixed coupon of 8.5% per annum. Since the issuance of the
notes in 2011 and 2012, however, no interest payment has been received by Apexindo on these
notes. The face value of the notes has been increasing by the amount of the coupon. As of June
2013, Apexindo had $379 million of investment in the notes and interest receivable on the notes,
that is not yet converted into the notes, amounting to $9.2 million. Aserra plans a further
restructuring of the group that will result in a capital reduction of AIPL to AEI, and a merger of
AEI into Apexindo. Another result will be the elimination of the notes.
The refinancing exercise will repay the bank facility and the remaining proceeds for general
corporate purposes, including the repurchase or repayment of the IDR bonds on or prior to their
maturity. Beyond this, we do not expect the company to need further funding as the companys
capex will be lower than its cash flow operations, resulting in positive free cash flows.
This may result in shareholder-friendly actions such as high distributions or buybacks -- which
would be ratings negative. But we draw comfort from the restrictions imposed by the covenants
under proposed bonds.
Nonetheless, there is no further headroom for increase in debt at the current rating level and any
expansion will have to be funded by a combination of internal cash generation and new equity.

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Global Peers: Comparison with Parker Drilling, Pacific Drilling, Atwood

Oceanics, Shelf Drilling, Hercules Offshore and Hilong
We compared Apexindo with its global peers rated at the Ba and B levels Atwood Oceanics (Ba2
stable), Hilong Holding (Ba2 stable), Parker Drilling (B1 stable), Shelf Drilling (B1 stable),
Hercules Offshore (B2 stable) and Pacific Drilling (B3 positive).
In comparison, Apexindo is weakly positioned at its Ba3 rating because of 1) its smaller size and
scale; 2) higher financial leverage; and 3) high geographic and customer concentration. However,
the company outperforms most of its peers on revenue visibility, given its high order book size-torevenue ratio. Moreover, with no rigs on order, Apexindo is exposed to minimal execution risk in
the next 12-18 months, in comparison to some of its peers which have a significant number of rigs
on order for delivery. Also, Apexindo benefits from the local content regulations that are unique to
Indonesia.
EXHIBIT 10

Comparison with Global Peers

Apexindo

Atwood
Oceanics

Hilong Holding

Parker Drilling

Shelf Drilling[2]

Hercules
Offshore

Pacific Drilling

Corporate Family Fating

(P)Ba3

Ba2

Ba2

B1

B1

B2

B2

Outlook

Stable

Stable

Stable

Stable

Stable

Stable

Stable

Grid-Indicated Rating

Ba3

Baa1

Baa

Ba3

Ba2

B2

B1

No. of operating rigs

14

10

11

40

38

50

Revenue (USDm)

209

787

359

678

Unavailable

710

638

EBITDA (USDm)

120

396

102

229

Unavailable

218

266

Assets (USDb)

0.8

2.9

0.7

1.3

1.4-1.5 [2]

2.1

4.9

Order Book size (USDm)

755

2,600

Unavailable

Unavailable

1,660

680

3,400

Order Book/2012 Revenue (x)

3.6x

3.3x

Unavailable

Unavailable

Unavailable

1.0x

5.3x

No. of rigs on order

2 [4]

Projected capex for expansion

(USD)

1,600m

RMB1.5-2b

Unavailable

31m [3]

245m [5]

1,600m

Geographic concentration

High, in Indonesia

No

No

No

No

High, in Gulf of
Mexico

No

High customer concentration

Yes 62% revenue

from one customer

No

Yes 5 A/Aa rated

customers account
for 50-55% of
revenues

Yes in international
segment (46% of
revenues)

Yes 57% of order

book from 3
customers

No

No

Debt/EBITDA

4.3x

2.2x

1.7x

2.4x

2.5x [2]

4.3x

8.5x

Debt/Capitalisation

67.4%

31.1%

31.3%

47.2%

60% [2]

50.1%

49.6%

EBIT/Interest

1.9x

7.8x

6.2x

2.3x

3.0-3.5x [2]

0.5x

1.0x

Scale

Order Book

Execution Risk

Qualitative Considerations

2012 Financial Metrics

[1] All financial data and ratios are calculated using Moodys Standard Adjustments.
[2] Historical data for Shelf Drilling is not available as it acquired all its rigs from Transocean (Baa3 negative) on 9 September 2012. Selected financials based on our projections on a forward-looking basis are
provided.
[3] Rig activation capital expenditures
[4] Hercules Offshore owns a 32% stake in Discovery Offshore S.A., a newly established Luxembourg-based company established in 2011 to own two new-build Super A class jack-up rigs under construction at
Keppel FELS in Singapore.
[5] Capital expenditures and dry dock

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Mapping to Rating Methodology

Based on our Global Oilfield Services Industry Rating Methodology published in December
2009, Apexindo maps to a Ba corporate family rating based on its historical results. The
methodology does not capture Apexindos strong competitive position in the domestic market,
given its advantage in meeting local content regulations, and its high revenue visibility.
EXHIBIT 11

Global Oilfield Services Rating Methodology

Aaa

Aa

Baa

Ba

Caa

Factor 1: Scale and Business Profile

(45%)
Assets (USD billion)

Business Profile

Factor 2: Profitability and Returns (15%)

EBIT / Assets (5 Year Average)

Factor 3: Financial Strength (40%)

EBIT / Interest Expenses (5 Year Average)
Debt / EBITDA (5 Year Average)

X
X

Debt / Book Capitalization

Grid-Indicated Rating

Actual Rating Assigned

(P)Ba3

[1] All financial data and ratios are calculated using Moodys Standard Adjustments.
[2] Based on financial data as of 31 December 2012.
Source: Moodys Financial Metrics

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Appendix I: Apexindos Historical Financial Summary (as adjusted)

(USD millions)

31-Dec 2010

31-Dec 2011

31-Dec 2012

Revenue

212

210

209

EBITDA

136

113

120

64.2%

53.8%

57.5%

EBITDA Margin
EBIT

84

67

71

EBIT Margin

39.8%

32.0%

33.9%

Total Assets

578

665

849

Total Debt

334

378

517

Cash

46

10

12

Capex

31

113

68

FFO

86

97

83

CFO

118

106

90

RCF

86

97

83

FCF

87

-7

21

25.9%

25.8%

16.1%

2.5x

3.3x

4.3x

62.2%

62.3%

67.4%

1.7x

2.0x

1.9x

RCF/Debt
Debt/EBITDA
Debt/Capitalization
EBIT/Interest

[1] All financial data and ratios are calculated using Moodys Standard Adjustments.
Source: Moodys Financial Metrics

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Report Number: 154967

Authors
Vikas Halan
Rachel Chua

Editors
Barry Hing

Production Associate
Sarah Warburton
2013 Moodys Investors Service, Inc. and/or its licensors and affiliates (collectively, MOODYS). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. (MIS) AND ITS AFFILIATES ARE MOODYS
CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR
DEBT OR DEBT-LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY
MOODYS (MOODYS PUBLICATIONS) MAY INCLUDE MOODYS CURRENT OPINIONS OF THE RELATIVE
FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODYS
DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL
OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT.
CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK,
MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODYS OPINIONS INCLUDED IN
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AND MOODYS PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND
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PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODYS
PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR.
MOODYS ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODYS PUBLICATIONS WITH THE EXPECTATION
AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH
SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
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SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,
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PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODYS PRIOR WRITTEN
CONSENT.
All information contained herein is obtained by MOODYS from sources believed by it to be accurate and reliable. Because of the possibility of
human or mechanical error as well as other factors, however, all information contained herein is provided AS IS without warranty of any kind.
MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources
MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODYS is not an auditor and cannot
in every instance independently verify or validate information received in the rating process. Under no circumstances shall MOODYS have any
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NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR
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FORM OR MANNER WHATSOEVER.
MIS, a wholly-owned credit rating agency subsidiary of Moodys Corporation (MCO), hereby discloses that most issuers of debt securities
(including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment
of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO
and MIS also maintain policies and procedures to address the independence of MISs ratings and rating processes. Information regarding certain
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reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading Shareholder
Relations Corporate Governance Director and Shareholder Affiliation Policy.
For Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODYS affiliate,
Moodys Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moodys Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL
383569 (as applicable). This document is intended to be provided only to wholesale clients within the meaning of section 761G of the
Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODYS that you are, or are accessing the
document as a representative of, a wholesale client and that neither you nor the entity you represent will directly or indirectly disseminate this
document or its contents to retail clients within the meaning of section 761G of the Corporations Act 2001. MOODYS credit rating is an opinion
as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to
retail clients. It would be dangerous for retail clients to make any investment decision based on MOODYS credit rating. If in doubt you should
contact your financial or other professional adviser.

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JUNE 10, 2013

SEPTEMBER 2008

NEW ISSUER REPORT: PT APEXINDO PRATAMA DUTA TBK