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S&P takes actions on Indonesian companies after sovereign upgrade
S&P said it has taken rating actions on nine Indonesian companies after lifting the sovereign credit rating on Indonesia to BBB/A-2 from BBB-/A-3.
The outlook on the long-term rating is stable, the rating agency said of the sovereign, also revising its country risk assessment to moderately high 4 from high 5, given the view of reduced Indonesian economic risk.
“In our view, Indonesia has solid growth prospects, and we expect stable policy making over the coming years,” S&P said in a news release.
S&P raised to BBB from BBB- the ratings on Perusahaan Perseroan (Persero), PT Perusahaan Listrik Negara and PT Pertamina (Persero) because it believes these companies will continue to play a critical role for the Indonesian government and benefit from government support. The stable outlook on these companies reflects the outlook on the sovereign.
It upgraded PT Pelabuhan Indonesia II (Persero) and PT Pelabuhan Indonesia III (Persero) to reflect the companies' close relationship with the government and likelihood of support, revising its assessment of the stand-alone credit profile of the first company to bbb- from bb+, and the second company to bb+ from bb.
It raised the rating on PT Cikarang Listrindo Tbk. in light of its view that the company is well positioned to benefit from Indonesia's solid growth prospects.
It raised the foreign currency rating on PT Astra International Tbk. (Astra) given its revised transfer and convertibility assessment for Indonesia to BBB+ from BBB. This assessment previously constrained the foreign currency rating on Astra.
It revised Astra's stand-along credit profile to a- from bbb+ in light of expected benefit from Indonesia's faster economic growth and stable policymaking.
It revised the outlook on PT Perusahaan Gas Negara Tbk. (PGN) and its subsidiary PT Saka Energi Indonesia to stable from negative to reflect the improved ability of the Indonesia government and PGN's parent PT Pertamina (Persero) to support the companies.
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