Moody's may boost PLN

Moody's Investors Service said it placed Perusahaan Listrik Negara's Ba2 corporate family rating and senior unsecured bond rating on review for possible upgrade.

This rating action follows Moody's decision to place the Indonesian Government's Ba2 rating on review for possible upgrade, the agency noted.

"Given PLN's 100% ownership by the Ministry of State-Owned Enterprises, its strategic importance as Indonesia's only vertically integrated electricity utility, as well as the ongoing government support through subsidies to ensure its financial viability and operational soundness, Moody's considers PLN's rating to be closely integrated with, and strongly linked to, the government's credit quality," said Moody's lead analyst for the company, Jennifer Wong.

"Accordingly, a change in Indonesian government's rating could lead to a change in PLN's rating."

Moody's said that its last rating action with regard to PLN occurred on June 21, when the outlook on the company's Ba2 corporate family and senior unsecured ratings was changed to positive from stable.

© 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.