Fitch lifts Perusahaan Gas

Fitch Ratings said it upgraded PT Perusahaan Gas Negara's long-term foreign- and local-currency issuer default ratings to BB from BB- and affirmed its national long-term rating at AA(idn). Fitch also said it upgraded PGN Euro Finance 2003 Ltd.'s $125 million notes due in 2014 and $150 million notes due in 2013, guaranteed by PGN and its subsidiaries, to BB from BB-.

The outlook is stable.

The upgrade reflects the company's improved financial and operating profiles and an expectation that the company will continue to sustain moderate credit metrics, Fitch said.

The ratings continue to be supported by its dominant positions in Indonesia's gas distribution and transmission sectors, with a market share of about 93% and 87%, respectively, Fitch said.

Fitch said gas sales to the industrial sector have dropped slightly in recent months on the back of adverse macroeconomic conditions. But, the agency said it believes any further reduction is likely to be mitigated by strong demand from the power sector.

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