TEXT-S&P summary: PT Pertamina (Persero)

Mon Oct 8, 2012 7:14am EDT

(The following statement was released by the rating agency)

Oct 08 -

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Summary analysis -- PT Pertamina (Persero) ------------------------ 08-Oct-2012

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CREDIT RATING: BB+/Positive/-- Country: Indonesia

Primary SIC: Combination

utilities, nec

Mult. CUSIP6: 69369E

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Credit Rating History:

Local currency Foreign currency

09-May-2011 BB+/-- BB+/--

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Rationale

The rating on integrated oil and gas company PT Pertamina (Persero) reflects the company's critical role and integral link with the government of Indonesia (BB+/Positive/B; axBBB+/axA-2). Pertamina is the highest revenue generator among Indonesia's state-owned enterprises and plays key strategic roles in the country's upstream and downstream energy sectors. The Ministry of State-Owned Enterprises fully owns Pertamina and has considerable control over the company's strategic direction through the ability to appoint its commissioners and directors. We do not expect Pertamina to be privatized in the next four to five years at least.

In accordance with our criteria for rating government-related entities, we believe there is an "almost certain" likelihood that the Indonesian government would provide timely and sufficient extraordinary support to Pertamina in the event of financial distress.

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