Fitch rates Pupuk Indonesia AAA(idn)

Fitch Ratings said it assigned a national long-term rating of AAA(idn) to PT Pupuk Indonesia.

The outlook is stable.

The rating is equalized with the sovereign's national scale to reflect strong operating and strategic linkages between Pupuk Indonesia and its ultimate shareholder, the government of Indonesia, Fitch said.

The strong linkages are manifested in the company's public service obligation to manufacture and distribute subsidized fertilizers in Indonesia, which represent about 75% of the company's annual production volume, the agency said.

The Indonesian government's implied support for the company is evident in fertilizer manufacturing being earmarked as one of the industries prioritized for gas allocation, Fitch said.

Its strategic importance to Indonesia is further underpinned by its position as the nation's largest fertilizer manufacturer, the agency added.

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