S&P assigns Perusahaan Gas notes BB+

Standard & Poor's said it assigned its BB+ issue rating to the proposed issue of dollar-denominated senior unsecured notes by PT Perusahaan Gas Negara (Persero) Tbk. (BB+/table/--; axBBB+/--).

Perusahaan plans to use the proceeds to refinance existing obligations, capital expenditure, working capital requirements and other general corporate purposes.

S&P said the rating reflects the company's dominant position in gas distribution and transmission in Indonesia, stable cash flows supported by sales that it expects to be robust and insulation from price risks.

The company's exposure to Indonesia's country, macroeconomic and regulatory risks, reducing natural gas reserves and counterparty risks temper these strengths, the agency said.

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