S&P rates Indonesia sukuk BBB-

S&P said it assigned a preliminary BBB- rating to the proposed dollar-denominated sukuk (trust certificates) to be issued by Perusahaan Penerbit SBSN Indonesia III (PPSI III) under its $25 billion program.

PPSI III is a special purpose vehicle of the Republic of Indonesia, established solely to issue foreign-currency denominated Sharia-compliant securities on international markets, the agency said.

The preliminary BBB- rating on the proposed trust certificates reflects the rating on Indonesia because the transaction fulfils the conditions for the rating sukuk at the same level as the rating on its sponsor, S&P said.

Indonesia will provide sufficient and timely contractual obligations for the repayment of the periodic distribution amounts and the principal amount, the agency said.

These obligations will rank pari passu with Indonesia's unsecured, unsubordinated external indebtedness, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.