Fitch lifts Perusahaan Gas view to positive

Fitch Ratings said it revised the outlook on Perusahaan Gas Negara Tbk.'s long-term foreign- and local-currency issuer default ratings to positive from stable and affirmed the issuer default ratings at BBB-.

Fitch also said it affirmed the company’s senior unsecured rating and the rating on its $1.35 billion bonds due 2024 at BBB-.

The action follows the revision of the outlook on Indonesian's sovereign to positive from stable, the agency said.

The company’s ratings are constrained by the rating of the Republic of Indonesia as the state owns 57% of the company, Fitch said.

The agency said it does not expect the company’s credit metrics to further worsen materially in 2016 through 2017, even though some risks remain.

The company's financial leverage is expected to increase slightly to about 2.7x by 2017, based on moderate volume growth and further decline in spread, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.