Moody's rates PLN bonds Ba2

Moody's Investors Service said it assigned a Ba2 senior unsecured rating to PT Perusahaan Listrik Negara's proposed bond issuance and affirmed its Ba2 corporate family rating.

The outlook is stable, in line with the sovereign outlook.

Proceeds will be used to help fund the capital expenditure requirements in connection with transmission and distribution construction projects and for general corporate purposes.

"In light of PLN's 100% ownership by the Ministry of State-Owned Enterprises, strategic importance as Indonesia's only vertically-integrated electricity utility, as well as the government subsidies to ensure its financial viability and operational soundness, Moody's considers PLN's rating to be closely linked to the government's credit quality," Jennifer Wong, a Moody's analyst, said in a statment.

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