S&P to rate Pertamina

State oil and gas company Pertamina said on Wednesday it would be rated by US based rating agency Standard & Poor?s starting next year.

?We are now making necessary arrangements, and I?m sure with Pertamina?s financial strength, we could be rated at around ?BBB?,? director of finance Ainun Na?im told reporters.

Standard & Poor?s defines ?BBB? rating as: has adequate capacity to meet financial commitments, however at adverse economic condition or changing circumstances are more likely to lead to a weakened capacity to meet financial commitments.

Ainun said currently, Pertamina has assets of around US$11.2 billion with revenue of $19 billion. He said pertamina is undergoing fixed assets re-valuation that could boost the company?s assets value significantly.

He said Pertamina is expecting this year?s pre-tax profit to be at around last year?s profit of Rp. 10 trillion (US$ = 9,000). Under the present regulation, Pertamina income tax rate is 60 percent, doubling the normal tax rate of 30 percent. Pertamina is also required to pay 50 percent of its after-tax profit to the government in dividend. (alex)