PEFINDO affirms “idAAA” rating for Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara
Monday, April 13 2020 - 09:46 PM WIB
(April 9, 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. At the same time, PEFINDO has affirmed its “idAAA” rating for PPLN’s maturing Shelf Registered Bond I/2013 Phase I Seri A of IDR182.0 billion due on July 5, 2020. PEFINDO also has affirmed its “idAAA(sy)” rating for maturing Shelf Registered Sukuk I/2013 Phase I of IDR121.0 billion due on July 5, 2020. The Company plans to use its internal fund to pay the maturing bond and sukuk. As of December 31, 2019, PPLN had cash and cash equivalents of IDR46.6 trillion. 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) means the rating mandates Islamic principles compliant.
The corporate rating reflects PPLN’s strong and proven support from the Indonesian government, strong financial flexibility, superior market position, and the growing domestic demand for electricity. 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 view that prolonged COVID-19 pandemic will impact to slower economic growth, which is directly hit PPLN’s revenue growth in the near term. However, we do not see that the government will lower its support to PPLN. The rating could be lowered if PEFINDO views a material reduction of support from the government.
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 45,697 megawatts (MW) (including rental) at the end of 2019. (ends)