S&P rates PLN notes BBB

S&P said it assigned a BBB rating to a proposed issuance of senior unsecured notes by PT Perusahaan Listrik Negara (PLN).

The company will issue the notes under its $5 billion global medium-term notes program, which also has a BBB rating.

The ratings on the proposed notes and the program reflect the long-term issuer credit rating on PLN, S&P noted.

The proceeds will be used for planned capital expenditures and general corporate purposes, the agency said.

The drawdown is in line with an expectation of additional debt to fund PLN's high capital expenditure plans, S&P said.

The ratings reflect a view that the Indonesian government would provide timely support to the company in all circumstances, the agency said.

S&P said it believes PLN plays a critical role in Indonesia's electricity sector, including providing subsidized electricity and driving the nation's 100% electrification target.

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