S&P rates Saka Energi notes BB

S&P said it assigned a BB long-term corporate credit rating to PT Saka Energi Indonesia.

The outlook is positive.

The agency also said it assigned a axBBB long-term Asean regional scale rating to the company.

S&P also said it assigned a BB rating to the dollar-denominated senior unsecured notes that Saka Energi proposes to issue.

The ratings reflect the company's B+ stand-alone credit profile and a view that Saka Energi will benefit from extraordinary support from its parent, PT Perusahaan Gas Negara (Persero) Tbk., the agency said.

Saka Energi's stand-alone credit profile reflects the company's small scale, short operating record, geographical and cash flow concentration from a few fields in Indonesia, and elevated investment appetite, S&P said.

Saka Energi's fairly stable cash flows, gas-sale contracts with creditworthy counterparties, manageable funding needs, ongoing parent support and favorable profitability temper these weaknesses, the agency said.

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