S&P lowers Pertamina stand-alone rating

Standard & Poor's said it affirmed the BB+ long-term corporate credit rating on PT Pertamina (Persero).

The agency also said it affirmed the BB+ rating on the company's senior unsecured notes, along with the company’s axBBB+ long-term Asean regional scale rating.

The outlook is positive.

The ratings reflect an expectation that Pertamina will continue playing a strategic role in Indonesia's upstream, mid-stream and downstream hydrocarbon sector for the next five years at least, S&P said.

The agency also said it lowered Pertamina's stand-alone credit profile to BB from BB+ because of expected reduced operating cash flows and still-high capital spending.

The company is expected, however, to maintain its integral link with the government, including full ownership, S&P said.

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