Fitch keeps Medco at BB- and Maybank targets Medco Energi stock at IDR 2,500
Published on 10/22/2026 at 09:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSCredit profile and expansion
- Fitch retained Medco's BB- rating on October 18, 2026, with a stable outlook.
- Net leverage is projected at 3 times in 2028 after the 10% Kutei transaction.
- Medco Energi Internasional stock trades at EUR 0.07 at 9:05 a.m. CEST at Lang & Schwarz on October 22, 2026.
Medco Energi Internasional (ID1000053705) is trading at EUR 0.07 at Lang & Schwarz on October 22, 2026, while Fitch has retained its BB- rating with a stable outlook. The rating agency's October 18 assessment puts the proposed 10% Kutei acquisition at the center of the credit discussion, with net leverage projected to reach 3 times in 2028.
Credit pressure stays manageable
According to Kontan, Fitch said the transaction was credit neutral in its October 18, 2026 report. The projected increase from 2.50 times net debt to EBITDA at the end of 2025 to 3 times in 2028 remains below Fitch's 3.30 times negative-rating sensitivity threshold.
The deal would add more than 1.30 trillion cubic feet of gas in place and could increase Medco's proved reserves by 25 percent. Fitch also estimated that the company held USD 1.40 billion in cash at the end of June 2026, providing a funding base for the transaction.
What does the deal mean for leverage?
The acquisition is expected to strengthen Medco's long-term gas portfolio, but capital spending could offset part of that benefit. Fitch expects free cash flow before dividends to move to neutral, while Kutei production is forecast to rise gradually and exceed 40,000 barrels of oil equivalent per day at peak from 2033.
Three dated developments
On September 21, 2026, MedcoEnergi listed its first-half performance release, covering revenue of USD 1.41 billion and net income of USD 275.31 million. On October 12, 2026, Medco agreed to acquire a 10 percent non-operated interest in four Kutei Basin production sharing contracts, as MarketScreener reported. On October 18, 2026, Fitch retained the BB- rating and stable outlook.
Maybank keeps its target
Maybank Sekuritas Indonesia retained its buy recommendation and IDR 2,500 target in research dated October 13, 2026, according to Kontan. The target did not yet include the four PSCs because the acquisition value, funding structure and other conditions had not been disclosed.
Stock trades in pre-market
Medco Energi Internasional stock was trading at EUR 0.07 at Lang & Schwarz on October 22, 2026 at 9:05 a.m. CEST. The Jakarta listing was reported at IDR 1,355 in pre-market trading on the same date.
The further course of trading is shown by the continuously updated real-time quote of Medco Energi Internasional stock.
Medco Energi Internasional stock at a glance
- Company: PT Medco Energi Internasional Tbk
- ISIN: ID1000053705
- Ticker: MEDC
- Primary exchange: Indonesia Stock Exchange
- Price Lang & Schwarz (as of October 22, 2026, 9:05 a.m. CEST): EUR 0.07
- Market capitalization: IDR 35.9 trillion (as of October 10, 2026)
- Sector / Industry: Energy / Oil and gas exploration and production
Market context: Market report IDX Composite.
