S&P raises PGN?s long-term foreign currency rating to ?B?
Thursday, October 9 2003 - 12:32 AM WIB
The ratings are in line with the Wednesday?s upgrade of Indonesia?s sovereign ratings. S&P raised its long-term foreign and local currency ratings on Indonesia by one notch to 'B' from 'B-' and to 'B+' from 'B', respectively. The short-term foreign currency rating was also raised one notch to 'B', the same level as the short-term local currency rating.
This was the second time this year S&P upgraded the country?s ratings as an expression of its confidence in the country?s fiscal and economic stability.
In a press release on Wednesday, S &P said it also raised the rating on PGN-guaranteed US$150 million eurobond issued by PGN Euro Finance2003 Ltd. to ?B? from ?B-?.
Actually, the PGN had reduced the value of the senior unsecured notes from $250 million to $150 million because most of the investors wanted above 7.75 percent yield.
The yield on the bond and the interest rate were fixed at 7.75 percent and 7.5 percent respectively, PGN president WMP Simanjuntak told Bisnis last month.
The eurobond will be listed on the Singapore Exchange today. (*)