S&P changes view on Indonesian companies

S&P said it revised the outlook on eight Indonesian companies after it changed the outlook on Indonesia’s sovereign rating to negative from stable on Friday.

“We revised the outlook on the following four government-related entities to negative from stable: PT Pertamina (Persero), Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara, PT Pelabuhan Indonesia II (Persero), and PT Jasa Marga (Persero) Tbk. This revision reflects the sensitivity of these entities to the sovereign credit rating on Indonesia, given their relationship to, and majority ownership by, the government,” said S&P in a press release.

S&P revised the outlook on PT Perusahaan Gas Negara Tbk. to negative from stable. “This reflects the outlook revision on its majority shareholder, integrated oil and gas producer Pertamina. We affirmed the BBB- rating on PT Pelabuhan Indonesia III (Persero) with a stable outlook, given that the rating and outlook will not change even if the sovereign rating is lowered to BBB-,” the agency said.

S&P said it changed the outlook on PT Astra International Tbk. to negative from stable to reflect the likelihood that it may lower the transfer and convertibility (T&C) assessment following the sovereign action but affirmed the BBB+ foreign-currency rating and the A- local-currency rating on the company.

“We affirmed the BBB issuer credit ratings on telecom tower operator PT Profesional Telekomunikasi Indonesia (Protelindo) with a stable outlook. In our view, Protelindo's stable cash flow, moderate leverage, limited debt maturities within the next two years, as well as the discretionary nature of its capital spending and dividend payments provide the company with financial flexibility to withstand a significant period of sovereign stress while still having enough liquidity to honor all its obligations in a timely manner,” the agency said.

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