Moody’s assigns Baa2 to PLN notes

Moody's Investors Service said it assigned a provisional Baa2 rating to the proposed $5 billion global medium-term note program of Perusahaan Listrik Negara (PLN).

At the same time, the agency assigned a Baa2 senior unsecured 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 drawdown will include a tranche of PLN's inaugural "Komodo bond" – an Indonesian rupiah-denominated global bond settled in dollars.

The outlook is stable.

Moody’s said the Baa2 rating reflects the application of its rating methodology for Government-Related Issuers (GRIs) 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 (Baa2 stable) is likely to provide in a distressed situation in light of its 100% ownership of PLN.

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