Reuters reported that shares in Indonesia Bumi Resources, Asia biggest thermal coal exporter fell on Tuesday after S&P cut the company's rating on Monday.

S&P lowered its rating on Bumi Resources to 'BB-' from 'BB' with a negative outlook saying the company is unlikely to substantially lower its debt over the next 12 months.

S&P said in statement that "We expect Bumi operating cash flow to remain weak because of high production and financing costs and taxes, slower-than-anticipated production growth and lower coal prices, thereby limiting the company's potential to reduce debt."

It said "The negative outlook reflects our expectation that Bumi financial performance is likely to be weak for the current rating over the next 12 months at least."

Source - Reuters

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