S&P rates Perusahaan Pengelola BB

S&P said it gave BB ratings to PT Perusahaan Pengelola Aset and its planned dollar-denominated senior notes.

“The ratings reflect our view that PPA is a government-related entity with a moderately high likelihood of receiving government support in the event of financial distress. The ratings therefore incorporate a three-notch uplift for government support,” S&P said in a press release.

PPA’s stand-alone credit profile is driven by its niche role as a distressed state-owned enterprises manager, adequate capital levels, exposure to riskier SOEs and high reliance on wholesale funding sources including bank loans and bonds, the agency said.

The outlook is negative, reflecting the negative outlook on Indonesia, S&P said.

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