S&P lifts Pertamina stand-alone rating to BB+

S&P said it affirmed the BBB- long-term issuer credit rating on PT Pertamina (Persero) (Pertamina).

The agency also said it affirmed the BBB- rating on the company's senior unsecured notes.

S&P also said it revised the company's stand-alone credit profile to BB+ from BB.

The outlook is stable.

The agency also said it affirmed the ratings because it expects Pertamina to continue playing a strategic role in Indonesia's hydrocarbon sector for the next five years at least.

The company will maintain its integral link with the government, including full ownership, S&P said.

That is why S&P said it equalizes the rating on Pertamina with the sovereign credit rating on Indonesia.

The revision of the stand-alone rating is because Pertamina will exercise prudence in cash flow management and leverage maintenance amidst anticipation for rising capital expenditure over the next three years, the agency said.

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