Fitch rates Persero bond AAA(idn)

Fitch Ratings said it assigned a national long-term rating of AAA(idn) to PT Pupuk Indonesia (Persero)'s Rp 4.38 trillion bond due 2022.

The bond is rated at the same level as the company's national senior unsecured debt rating as it represents its direct, unconditional and unsecured obligations, Fitch said.

The proceeds will be used to refinance existing debt.

The bond is the second issuance launched from the company's Rp 10 trillion bond program, which was assigned an AAA(idn) rating last June, Fitch said.

After this second issuance, the company will have about Rp 2 trillion remaining on its bond program, the agency added.

The AAA national rating denotes the highest rating assigned by Fitch on its national rating scale for that country, Fitch noted.

The company is considered a key state-owned entity as it is the Indonesian government's sole agent to produce and distribute subsidized fertilizer to eligible farmers through a public-service obligation scheme, the agency said.

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