Fitch: Pertamina notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to PT Pertamina's dollar-denominated notes to be issued under its global medium-term note program.

The program, which is rated at BBB-, has increased to $10 billion from $5 billion, Fitch said.

The proposed 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 agency said.

The proceeds will be used for the state-owned oil and gas company's capital expenditure, acquisitions and general corporate purposes, Fitch said.

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

The ratings are aligned with those of its parent, the Indonesian sovereign, due to their strong operating and strategic linkages, Fitch 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 the dominant retailer of petroleum products, the agency said.

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