Fitch Revises Outlook on

4/11/22, 10:20 AM Fitch Revises Outlook on GEAR to Positive; Affirms IDR at 'B+' https://www.fitchratings.com/research/corporate-finance/fitch-revises-outlook-on-gear-to-positive-affirms-idr-at-b-10-04-2022 1/11 RATING ACTION COMMENTARY Fitch Revises Outlook on GEAR to Positive; Affrms IDR at 'B+' Sun 10 Apr, 2022 - 7:54 PM ET Fitch Ratings - Singapore - 10 Apr 2022: Fitch Ratings has revised the Outlook on Golden Energy and Resources Limited (GEAR) to Positive from Stable, and affrmed the Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+'. The agency also affrmed the rating on GEAR's USD375 million notes due 2026 at 'B+', with Recovery Rating of 'RR4'. The Outlook revision refects our expectation that credit profle of GEAR's key subsidiary, Indonesia-based PT Golden Energy Mines Tbk (GEMS, B+/Positive), is likely to improve over the next 12 months with production scale reaching a level commensurate with that for 'BB-' rated peers in Indonesia. Fitch assesses that the credit profle of GEAR's other key subsidiary, Australia-based Stanmore Resources, will beneft from the USD1.3 billion acquisition of Dampier Coal, which owns 80% in BMC's metallurgical coal operations in Australia. The transaction will increase Stanmore's scale and diversity. However, these business-profle improvements will be partially offset by the holding structure, with debt-servicing requirements at the acquiring-entity level. KEY RATING DRIVERS Improving Credit Profle at GEMS : Fitch expects GEMS' credit profle to improve the operational scale sustainably and become comparable with other 'BB-' peers over the

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