Paiton debt restructuring no affect on rating: S&P

Following is a press release from Standard & Poor's Corp.:

SINGAPORE--Standard & Poor's Ratings Services said on Friday that Indonesia-based Paiton Energy Funding B.V.'s (PEF) successful restructuring of its commercial and export credit agency debts are within expectations and does not affect the current rating of its US$180 million senior secured bond (rated CCC/Positive/--).

PEF is the funding conduit for project bonds issued by PT. Paiton Energy (Paiton), owner of a coal-fired power plant in East Java, Indonesia.

The restructuring followed a revision in the power purchase agreement between Paiton and offtaker PT Perusahaan Listrik Negara Tbk (PLN), which was signed in mid-2002.

With the debt restructuring, Paiton's debt service coverage ratio is expected to be satisfactory, averaging about 1.5x between 2003 and 2014. Debt restructuring does not affect the payment terms of the rated bond. (*)