S&P gives Pertamina notes BBB-

S&P said it assigned its BBB- long-term issue rating to a drawdown of senior unsecured notes by PT Pertamina (Persero) (BBB-/stable/--) under the company's multi-currency $10 billion global medium-term note program.

The issuance amount is $750 million with an interest rate 6½% per year and maturity on Nov. 7, 2048.

“In our view, Pertamina benefits from its dominant position as the only state-owned integrated oil and gas company in the upstream and downstream segments in Indonesia,” the agency said in a news release.

“Additionally, the company has good production and refining scale, long reserve life, nationwide marketing network, and overall healthy financial position.

“These strengths are tempered by the vulnerability of Pertamina's earnings to oil prices, retail fuel prices, and subsidy-related regulations.”

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