S&P might cut Perusahaan Gas, Saka Energi

S&P said it placed its BBB- long-term issuer credit rating on PT Perusahaan Gas Negara (Persero) Tbk. on CreditWatch with negative implications.

The agency also placed the BBB- long-term issue ratings on the company's dollar-denominated notes on CreditWatch with negative implications.

At the same time, S&P placed the BB+ long-term issuer credit rating on PT Saka Energi Indonesia and the BB+ long-term issue ratings on the company's dollar-denominated notes on CreditWatch with negative implications.

“We placed PGN on CreditWatch because we expect the proposed acquisition of PT Pertamina Gas (Pertagas) to substantially increase PGN's leverage, potentially weakening its creditworthiness, if the transaction is funded with debt and cash,” the agency said in a news release.

“The proposed acquisition, if funded with cash and debt, would signal that the management supports a more aggressive financial policy than we previously anticipated.”

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