Fitch gives PT Perusahaan Gas Negara notes BB-

Fitch Ratings said it assigned ratings to PT Perusahaan Gas Negara Tbk, all with a stable outlook, including a long-term foreign currency issuer default rating at BB-, long-term local currency issuer default rating at BB-, PGN Euro Finance 2003 Ltd.'s $125 million notes due 2014 and $150 million notes due 2013 guaranteed by PGN and its subsidiaries at BB- and a national long-term rating at AA(idn).

As the Indonesian government is the majority shareholder and has demonstrated ongoing support to PGN, Fitch said it believes that PGN's ratings are inherently linked to that of the Republic of Indonesia (rated BB-/stable).

The agency added that PGN's ratings benefit from the dominant position the company enjoys in gas distribution and transmission within Indonesia, noting that the company's ratings are constrained by its ongoing substantially debt-funded expansion plan which involves laying two pipelines connecting South Sumatra to West Java at a cost of $1.1 billion.

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