PEFINDO: PT Perusahaan Listrik Negara (PPLN) rated idAAA with stable outlook

(June 13, 2023)--PEFINDO has also affirmed its idAAA rating for PPLN’s Bonds and its idAAA(sy) for its Sukuk Ijarah. The rating reflects PPLN’s critical role in providing electricity for the country, superior market position, its strong financial flexibility, and potential room for domestic electricity demand. The rating is constrained by its high financial leverage to support its significant capital expenditure (capex) plan and exposure to the energy transition risk.

The rating may be lowered if PEFINDO views a material weakening of the government support. Delays in subsidy and/or compensation payments or liquidity pressure on PPLN may indicates such weakening of 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 46,262 megawatts (MW) (including rental) as of March 31, 2023. (ends)