Moody's rates Pertamina notes Baa3

Moody's Investors Service said it assigned a provisional Baa3 rating to PT Pertamina (Persero)'s proposed $5 billion global medium-term notes program.

Moody's said it affirmed Pertamina's Baa3 issuer rating and senior note ratings.

The outlook is stable.

Proceeds will be used for financing capital expenditures and for general corporate purposes.

Pertamina's ratings reflect the company's strategically important position as Indonesia's national integrated oil & gas company, contributing significant upstream production and accounting for all the current refining capacity in the country, the agency said.

Pertamina's strengths are balanced by its exposure to moderate regulatory risks associated with a transitioning framework and execution risks associated with increasing investments in upstream exploration and production, the agency noted.

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