ข่าวประชาสัมพันธ์การเงิน/หลักทรัพย์

PT Perusahaan Listrik Negara’s Proposed Drawdown And Global Medium-Term Notes Assigned ‘BBB-‘ Rating

          SINGAPORE (S&P Global Ratings) Oct. 12, 2018--S&P Global Ratings today assigned its 'BBB-' issue rating to a proposed issue of senior unsecured notes by PT Perusahaan Listrik Negara (Persero) (PLN; BBB-/Stable/--). The company will issue the notes under its US$5 billion global medium-term notes program, which we have also assigned a 'BBB-' rating. The ratings on the proposed notes and the program reflect the long-term issue credit rating on PLN.
          PLN intends to use the proceeds for its planned capital expenditure and general corporate purposes. The drawdown is in line with our expectation of additional debt to fund PLN's high capital expenditure plans. 
          The rating on PLN reflects our view that the Indonesian government (BBB-/Stable/A-3) would provide timely support to the company in all circumstances. We believe PLN plays a critical role in Indonesia's electricity sector, including providing subsidized electricity and driving the nation's 100% electrification target. In our view, the government maintains significant influence over PLN through various ministries, giving it multiple avenues to identify risks and provide timely support. 
          A weak regulatory environment, high leverage, and continuing high capital expenditure weigh on PLN's stand-alone credit profile. The company's elevated annual capital expenditure of Indonesian rupiah (IDR) 85 trillion-IDR90 trillion is likely to result in negative free operating cash flows. We estimate PLN's leverage will remain high with a ratio of funds from operations (FFO) to debt of 8%-9%. This is after factoring in subsidies of about IDR60 trillion annually. 
          The stable outlook on PLN for the next 12-24 months reflects that on the sovereign rating as well as our expectation that the company will continue to benefit from ongoing and extraordinary government support.