Moody's affirms Perusahaan Gas

Moody's Investors Service said it affirmed the Ba2 corporate family rating of Perusahaan Gas Negara and affirmed the Ba3 debt ratings of PGN Euro Finance 2003 Ltd., which is guaranteed by Perusahaan Gas Negara.

The outlook is stable.

This affirmation follows the recent announcement of a delay in the South Sumatera West Java gas commercialization. While the delay will lead to a decline in distribution throughput in 2007 and negatively impact the profitability and cash flows of the company, Moody's said its financial profile is expected to improve once the gas commercialization commences given strong gas demand and remain consistent with the current rating level.

The slight slow down in capex requirements due to the delay in commercialization also will partially off-set this negative impact, the agency said. The affirmation further reflects Moody's understanding that the penalty involved is not material in the context of the company's cash position and balance sheet, and hence does not put pressure on the current rating.

© 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.