Fitch rates Perusahaan Listrik Negara bonds BBB

Fitch said it assigned an expected rating of BBB to PT Perusahaan Listrik Negara (Persero)'s (PLN, BBB/stable) proposed senior unsecured notes that will be issued out of its US$5 billion medium-term note program.

PLN's ratings are equalized with that of Indonesia (BBB/stable) to reflect the strong likelihood of support from the government, in line with Fitch's Government-Related Entities rating criteria.

“We have assessed PLN's standalone credit profile at BB+ to reflect its dominant position as a monopoly player in Indonesia's electricity-transmission and distribution sector, and owner of the majority of the country's power-generation capacity along with a moderate financial profile,” Fitch said.

“PLN's standalone credit profile is constrained by the need for large capex and the absence of an independent electricity regulatory framework in Indonesia.”

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