S&P ups Perusahaan Gas view to positive

Standard & Poor's said it revised the outlook on PT Perusahaan Gas Negara Tbk. to positive from stable and affirmed the ratings at B+.

The outlook revision reflects the expectation that the company's financial profile will improve in the near- to medium-term with distribution and transmission sales revenue increasing as a result of its two new major transmission lines into West Java from South Sumatra, the agency said.

The ratings reflect weaknesses that include gas supply constraints and mismatch of length in gas sales contracts, S&P said, adding that these are offset by the company's dominant market position.

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