Fitch rates PLN notes BBB

Fitch Ratings said it assigned an expected rating of BBB to PT Perusahaan Listrik Negara (PLN)'s proposed senior unsecured dollar-denominated notes to be issued from its $5 billion medium-term note program.

PLN's ratings are equalized with those of Indonesia, reflecting the strong likelihood of support from the government, Fitch said.

The company has a 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, the agency said.

PLN's standalone credit profile is constrained by the need for large capital expenditure and the absence of an independent electricity regulatory framework in Indonesia, Fitch said.

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