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.
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