S&P rates Pertamina notes BB+

Standard & Poor's said it assigned its BB+ and axBBB+ issue ratings to the proposed $5 billion global medium-term note program of PT Pertamina (Persero). S&P also assigned a BB+ issue rating to a proposed issue of up to $3 billion under this program.

The program and issue ratings reflect the long-term corporate credit rating on Pertamina (BB+/stable/--; axBBB+/--). The rating on Pertamina incorporates the company's bb+ stand-alone credit profile and S&P's view of an "almost certain" likelihood that the Indonesian government would provide timely and sufficient extraordinary support to Pertamina in the event of financial distress.

"We assess that the company plays a 'critical' role and has an 'integral' link with the government of Indonesia (BB+/stable/B; axBBB+/axA-2)," S&P said in a news release.

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