Lucror Negative on ABM Investama Credit Given Loss of Customer

(Bloomberg) -- “Our credit bias on ABM is ‘negative’ given the mining services subsidiary’s loss of a key customer, which will likely have an impact on FY 2019 revenue and earnings,” according to a note by Lucror Analytics.

NOTE: Fitch on Friday downgraded ABM Investama to B+, reflecting its weakening business profile due to the loss of coal mining contracts with one of its customers, Toba Bara Sejahtra in Q1, 2019

Toba Bara, which contributed about 20% of ABM’s total revenue in 2018, terminated its three contracts with ABM’s mining service subsidiary: Fitch

Lucror maintains “hold” recommendation on ABM Investama USD bonds due 2022.

2019-05-20 01:28:13.204 GMT​​

By Denise Wee