Moody’s gives Baa3 to PLN notes, program

Moody's Investors Service said it assigned a provisional Baa3 rating to the proposed $2 billion global medium-term note program of Perusahaan Listrik Negara (PLN).

At the same time, the agency assigned a Baa3 rating to the proposed notes issued under the program, which will represent the first drawdown under the program and will rank pari passu with all other senior unsecured debt issued by PLN.

The outlook is positive.

Moody’s said the Baa3 rating reflects the application of its rating methodology for government-related issuers (GRIs) (October 2014) that combines: (a) The company's standalone credit quality, or baseline credit assessment (BCA) of ba2; and (b) Moody's assessment of the credit support that the government of Indonesia (Baa3 positive) is likely to provide in a distressed situation in light of its 100% ownership of PLN.

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