Moody's announces completion of a periodic review of ratings of Perusahaan Gas Negara (P.T.)

(Singapore, May 20, 2021) -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Perusahaan Gas Negara (P.T.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 12 May 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

PGN's Baa2 ratings reflects the company's dominant position as Indonesia's largest gas transmission and distribution company. The Baa2 rating incorporates one-notch uplift based on our expectation that the company will receive support from the Government of Indonesia (Baa2), which may be through Pertamina (Persero) (P.T.) (Baa2).

PGN's standalone credit quality reflects its strong financial profile supported by its market position and prudent management. The rating also considers reduction in its distribution margins, weak demand for gas driven by the slow economic growth, weak upstream business fundamentals and mismatches between the tenors of its sales and supply contracts.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodologies used for this review were Regulated Electric and Gas Utilities published in June 2017 and Government-Related Issuers Methodology published in February 2020. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. (ends)