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S&P upgrades rating of eight Indonesian companies

Jakarta Post - June 10, 2019

Jakarta – After upgrading Indonesia's sovereign rating to BBB from BBB- with stable outlook, Standard & Poor's (S&P) Global Ratings has also looked into the long-term debt rating of nine Indonesian companies and their bonds.

S&P has upgraded the rating of six companies, state-owned electricity company PLN, state-owned energy holding company Pertamina, two state-owned port operators – PT Pelabuhan Indonesia II (Pelindo II) and PT Pelabuhan Indonesia III (Pelindo III) as well as two other private companies – PT Cikarang Listrindo and PT Astra Internasional.

Meanwhile, S&P has changed the rating prospect from negative to stable for state-owned gas subholding company PT Perusahaan Gas Negara (PGN) and PGN subsidiary PT Saka Energi Indonesia. The rating firm has maintained the BB+/stable rating of state-owned toll road operator PT Jasa Marga.

Kontan.co.id reported on Monday that S&P considered that PLN and Pertamina had important roles in supporting the government performance. PLN and Pertamina's ratings were upgraded to BBB with stable outlook from BBB-. The rating upgrade was also given to Majapahit Holding B.V., a PLN subsidiary that acts as issuer of PLN's global bonds.

PT Pelindo II's rating was upgraded to BBB from BBB-, while PT Pelindo III went from BB+ to BBB-with stable outlook as S&P took into consideration the high government support for the two companies. (bbn)

Source: https://www.thejakartapost.com/news/2019/06/03/sp-upgrades-rating-of-eight-indonesian-companies.html