PEFINDO affirms “idAAA” rating for Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara
Tuesday, June 30 2020 - 01:15 AM WIB
(June 29, 2020)--PEFINDO has affirmed its “idAAA” ratings for Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (PPLN) and its bonds.
PEFINDO has also affirmed its “idAAA(sy)” ratings for PPLN’s Sukuk Ijarah. The outlook for the corporate rating is “stable”.
An obligor rated idAAA has the highest rating assigned by PEFINDO. The obligor’s capacity to meet its long-term financial commitment, relative to that of other Indonesian obligors, is superior.
The suffix (sy) indicates the rating mandates Islamic principles compliant.
The corporate rating reflects PPLN’s strong and proven support from the Indonesian government, its strong financial flexibility, its superior market position, and the growing domestic demand for electricity in the medium term. The rating is constrained by its capital structure and cash flow protection measures, which will remain aggressive to support its significant capital expenditure (capex) plan.
We are of the view that the prolonged coronavirus disease 2019 (COVID-19) pandemic will result in slower economic growth, which could directly hit PPLN’s revenue growth in the near term. However, we do not expect the government to reduce its support for PPLN.
The rating could be lowered if PEFINDO views a material reduction in government support.
PPLN is a wholly owned state company engaged in the generation, transmission, and distribution of electricity throughout the country.
It is the only integrated electricity producer in Indonesia, with an installed capacity of 45,804 megawatts (MW) (including rental) at the end of March 2020. (ends)