Fitch: Pertamina notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to PT Pertamina's $3.25 billion 2023/2043 notes.

The notes are issued under its $5 billion guaranteed medium-term notes program.

The assignment of the final rating is in line with the expected rating assigned May 5 and follows a review of final documentation materially conforming to the draft documentation previously reviewed, Fitch said.

The notes are rated at the same level as Pertamina's issuer default rating of BBB- as they constitute direct, unconditional and senior unsecured obligations of the company.

The proceeds from the bond issue are to be used for Pertamina's capital expenditure and general corporate purposes, the agency said.

Pertamina is expected to step up its capital expenditure significantly in the medium term to increase upstream production and refinery operating flexibility, Fitch said.

Pertamina's ratings are aligned with those of its parent, the Republic of Indonesia, due to strong legal, operating and strategic linkages, the agency said. Pertamina is one of the most important state-linked entities in executing Indonesia's national energy policy and is the country's sole refiner and dominant retailer of petroleum products, Fitch said.

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