Fitch rates Paiton Energy notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to proposed debt guaranteed by PT Paiton Energy of up to the maximum of $2.75 billion.

The proposed debt securities are to be issued by Minejesa Capital BV, a Netherlands-based finance company, which has common ownership with Paiton.

The debt will be issued as dollar-denominated and yen-denominated loans due 2023, dollar-denominated notes due 2030 and dollar-denominated notes due 2037.

The expected ratings are supported by the absence of demand risk or merchant market exposure for Paiton due to its favorable power purchase agreement with PT Perusahaan Listrik Negara, which expires in 2042, Fitch said.

The ratings also reflect the company's effective pass-through of fuel costs to the off-taker, long operating track record and use of commercially proven technology, the agency said.

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