S&P lowers Persero to stable

S&P said it revised the outlook on PT Perusahaan Listrik Negara (Persero) to stable from positive.

The agency also lowered the Asean regional scale rating on the company to axBBB- from axBBB following the outlook revision.

S&P affirmed the company’s BB long-term corporate credit rating.

In addition, the agency affirmed the BB long-term issue ratings on the dollar-denominated senior unsecured notes issued by the company and the guaranteed notes issued by Majapahit Holding BV.

The outlook revision reflects that Persero’s cash flow adequacy and debt-servicing ratios will remain thin over the next three to four years, the agency said.

S&P also said it lowered the stand-alone credit profile on the company to B+ from BB-.

The lower stand-alone rating on the company means the agency no longer expects to raise the rating on the company even if the sovereign rating on Indonesia is increased, the agency said.

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