TEXT-Fitch rates Perusahaan Listrik Negara's notes 'BBB-(EXP)'
(The following statement was released by the rating agency)
Oct 16 - Fitch Ratings has assigned Indonesia-based PT Perusahaan Listrik Negara's (PLN; 'BBB-'/Stable) upcoming issue of 30-year USD bonds a 'BBB-(EXP)' rating. The bonds will be issued under its USD2bn global medium term notes (GMTN) programme.
The notes are rated at the same level as PLN as they will constitute direct, unconditional, unsubordinated and unsecured obligations of the company. The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received.
The net proceeds from the bond issue will be used for PLN's capex and general corporate purposes. As per Fitch's parent-subsidiary linkage methodology, the company's ratings are equalised with those of its parent, the Indonesian sovereign, based on the strong ties between the two.
For further information, see Fitch's credit update report on PLN, dated 18 July 2012 and available on www.fitchratings.com.
What could trigger a rating action?
Positive: Future developments that may, individually or collectively, lead to positive rating action include:
- Positive rating action on Indonesia provided there is no weakening of the legal, operational and strategic ties with the state.
Negative: Future developments that may, individually or collectively, lead to negative rating action include:
- Negative rating action on the sovereign
- Weakening of links with the state. Fitch, however, does not expect this to occur in the medium term.
- Tweet this
- Share this
- Digg this