Summary: PT Perusahaan Gas Negara (Persero) Tbk. Mar 12

Standard & Poors, March 2012

Abstract
The rating on Indonesian gas utility PT Perusahaan Gas Negara (Persero) Tbk. (PGN) reflects the company's exposure to sovereign risks and susceptibility to regulatory risk. PGN's strong market position in gas transmission and distribution, and its improving financial risk profile temper these weaknesses. The company's transmission business is also insulated from price risk and has minimal volume risk. The rating on PGN is consistent with the foreign currency sovereign credit rating on Indonesia (BB+/Positive/B; axBBB+/axA-2). Based on our criteria for rating government-related entities (GREs), we believe PGN has an "important" role in executing the administration's Integrated Indonesian Gas Pipeline projects, and has a "strong" link with its 57% owner, the Indonesian government. In our opinion, PGN's credit standing could be...

Companies mentioned in this report are: PT Perusahaan Gas Negara (Persero) Tbk.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

PT Perusahaan Gas Negara (Persero) Tbk.

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