Fitch rates PLN BB+

Fitch Ratings said it assigned PT Perusahaan Listrik Negara a long-term foreign-currency issuer default rating of BB+ with a positive outlook.

"PLN's rating reflects very strong legal, operating and strategic linkages with its parent - Republic of Indonesia (BB+/positive), which warrants an equalization of ratings with those of Indonesia under Fitch's parent and subsidiary linkage methodology," Sajal Kishore, a director at Fitch, said in a statement.

PLN's issuer default rating benefits from strong tangible support from the sovereign, in particular, the substantial subsidies it receives through an established mechanism, according to the agency.

The issuer's standalone credit profile is weaker than that of its parent due to high leverage levels and exposure to high fuel costs, the agency noted.

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