| Press release Comments Feed" href="http://theinsiderstories.com/2013/05/outlooks-on-four-indonesian-entities-revised-to-stable-following-sovereign-outlook-revision/feed/"/>
|Wednesday, July 3, 2013
  • Jakarta Composite4728.704-48.748 - -1.02%
  • Nasdaq3403.2470.00 - 0.00%
  • Hang Seng Index20658.65-144.639 - -0.70%
  • Taiwan Weighted8015.86-20.14 - -0.25%

S&P: Outlooks On Four Indonesian Entities Revised To Stable Following Sovereign Outlook Revision | Press release 

SINGAPORE (Standard & Poor’s) May 2, 2013-Standard & Poor’s Ratings Services today revised its rating outlooks to stable from positive and affirmed the global scale ratings on four Indonesian entities following a similar action on the sovereign credit rating on the Republic of Indonesia (BB+/Stable/B; axBBB+/axA-2). At the same time, we affirmed the ASEAN regional scale ratings on three of these entities and lowered the ASEAN regional scale rating on one. The ratings list follows:RATINGS LIST
Ratings Affirmed; Outlook Revision
To From

PT Pertamina (Persero)
Corporate credit rating
Foreign currency BB+/Stable/- BB+/Positive/-
Local currency BB+/Stable/- BB+/Positive/-
ASEAN regional scale axBBB+/- axBBB+/-
Senior unsecured BB+ BB+

PT Perusahaan Gas Negara (Persero) Tbk. (PGN)
Corporate credit rating
Foreign currency BB+/Stable/- BB+/Positive/-
Local currency BB+/Stable/- BB+/Positive/-
ASEAN regional scale axBBB+/- axBBB+/-

PT Bank Negara Indonesia (Persero) Tbk. (BNI)
Issuer credit rating BB/Stable/B BB/Positive/B
Subordinated B+ B+

Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank)
Issuer credit rating BB+/Stable/B BB+/Positive/B
ASEAN regional Scale axBBB+/axA-2 axBBB+/axA-2
Senior Unsecured
BB+ BB+
axBBB+ axBBB+

Ratings Lowered

PT Bank Negara Indonesia (Persero) Tbk. (BNI)
ASEAN regional scale axBBB-/axA-3 axBBB/axA-3

The revised outlook on Pertamina reflects our view of the government’s substantial influence on the company. We expect Pertamina to remain the government’s primary vehicle for distributing subsidized fuel throughout the country. Our view is based on the company’s integrated operations, dominance in Indonesia’s upstream and downstream oil and gas segments, and the strong demand prospects for energy in Indonesia.

We revised the outlook on PGN to reflect the company’s strong link with the government, exposure to sovereign regulatory risks, and counterparty exposure to government-related entities. The rating on PGN incorporates our expectation of potential negative intervention from the government if the sovereign comes under significant fiscal or external stress. The sovereign credit rating on Indonesia constrains the corporate credit rating on PGN.

Our rating on BNI factors in potential extraordinary government support in the event of financial distress. The rating is one notch higher than BNI’s stand-alone credit profile of ‘bb-’ because of the bank’s “high” systemic importance in Indonesia and our assessment of the government as “highly supportive.” BNI’s systemic importance is based on its size and market share.

The rating on Indonesia Eximbank is equalized with the sovereign rating. We believe the Indonesian government is “almost certain” to provide extraordinary support to the bank if needed. Our view is based on our assessment of the critical importance of Indonesia Eximbank’s policy role and the bank’s integral link with the government.

RELATED CRITERIA AND RESEARCH

  • Indonesia Outlook Revised To Stable From Positive; Ratings Affirmed At ‘BB+/B’ And ‘axBBB+/axA-2′, May 2, 2013
  • Rating Government-Related Entities: Methodology And Assumptions, Dec. 9, 2010

For Pertamina, PGN

  • Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
  • Stand-Alone Credit Profiles: One Component Of A Rating, Oct. 1, 2010
  • 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

For BNI

  • Banks: Rating Methodology And Assumptions, Nov. 9, 2011
  • Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

For Indonesia Eximbank

  • Rating Finance Companies, March 18, 2004

Media Contact:
Cecilia S Ho, Hong Kong, (852) 2532-8061;
cecilia_ho@standardandpoors.com

Primary Credit Analysts:
Andrew M Wong, Singapore; andrew_wong@standardandpoors.com
Rajiv Vishwanathan, CFA, Singapore; rajiv_vishwanathan@standardandpoors.com
Ivan Tan, Singapore; ivan_tan@standardandpoors.com

 

 

 

 

 

 

 

 

 

 

Standard & Poor’s Ratings Services, part of The McGraw-Hill Companies (NYSE:MHP), is the world’s leading provider of independent credit risk research and benchmarks. We publish more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. With over 1,400 credit analysts in 23 countries, and more than 150 years’ experience of assessing credit risk, we offer a unique combination of global coverage and local insight. Our research and opinions about relative credit risk provide market participants with information and independent benchmarks that help to support the growth of transparent, liquid debt markets worldwide.

 

 

 

Regulatory Affairs and Disclaimers| Privacy Notice| Terms of Use
Copyright © 2013 by Standard & Poor’s Financial Services LLC.No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P’s public ratings and analyses are made available on its Web sites,www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

STANDARD & POOR’S, S&P, GLOBAL CREDIT PORTAL and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC.

To manage your Standard & Poor’s Ratings Services subscription preferences, please click here.

If you do not wish to receive any more promotional e-mails from Standard & Poor’s Ratings Services, please click here to unsubscribe.

Standard & Poor’s Ratings Services, 55 Water Street, New York, NY 10041

Leave a Response


× eight = 16