S&P cuts rating on Indonesia's Bumi Resources to 'default'

JAKARTA, Dec 2 (Reuters) - Standard & Poor’s on Tuesday cut its corporate credit rating on PT Bumi Resources Tbk to ‘default’ from ‘selective default’, saying that Indonesia’s biggest coal miner is unlikely to service any of its debt for at least the next six months.

Three units of Bumi Resources last week obtained a six-month moratorium in a Singapore court against legal action from creditors. The companies had also filed for protection from creditors in a United States court.

“We lowered the corporate credit rating on Bumi Resources to ‘D’ because we do not expect the company will service any of its debt obligations for at least the next six months. We assess this to be a general default,” said Standard & Poor’s credit analyst Vishal Kulkarni. (Reporting by Eveline Danubrata)