Singapore, February 09, 2017 -- Moody's Investors Service has taken a number of rating actions on Indonesian
infrastructure government-related issuers (GRIs), following
the change in outlook on Indonesia's Baa3 sovereign rating to positive
from stable on 8 February 2017.
As a result of the sovereign rating action, Moody's has changed
the outlook on the ratings of the following companies:
Perusahaan Gas Negara (P.T.) (PGN): Affirmed Baa3
local currency issuer and foreign currency senior unsecured ratings and
revised outlook to positive from stable. The baa3 BCA remains unchanged.
Perusahaan Listrik Negara (P.T.) (PLN): Affirmed Baa3
local currency issuer and foreign currency senior unsecured ratings,
as well as its (P)Baa3 senior unsecured MTN (foreign) rating. The
outlook is revised to positive from stable. The ba2 BCA remains
unchanged. At the same time, Moody's has also affirmed
the Baa3 rating on the senior unsecured bond issued by Majapahit Holding
BV, PLN's wholly owned subsidiary, and guaranteed by
PLN. The outlook is revised to positive from stable.
Pelabuhan Indonesia II (Persero) (P.T.) (Pelindo II):
Affirmed Baa3 foreign currency issuer and senior unsecured ratings and
revised outlook to positive from stable. The baa3 baseline credit
assessment (BCA) remains unchanged.
The outlook for the following Indonesian infrastructure GRI remains unchanged:
Pelabuhan Indonesia III (Persero) (P.T.) (Pelindo III):
Affirmed Baa3 foreign currency issuer and senior unsecured ratings.
The stable outlook and ba1 BCA remains unchanged.
RATINGS RATIONALE
The change in outlook on PGN, PLN, and Pelindo II's ratings
follow the change in outlook on the sovereign rating.
"The change in outlook on PGN's ratings reflects the company's
dominant position in Indonesia's gas transmission and distribution
sector, and our expectation that the government will maintain its
majority ownership of PGN," says Abhishek Tyagi, a Moody's
Vice President and Senior Analyst.
"The change in outlook on PLN's ratings reflects the company's
strategically important position as Indonesia's only vertically
integrated electric utility, including its dominant position in
generation, transmission and distribution, and its close linkage
with the government as also reflected by its 100% ownership by
the government," adds Tyagi.
"The change in outlook on Pelindo II's ratings reflect its
strategic role as the key international maritime gateway for Indonesia,
given its control of the terminals in Jakarta. We believe that
the Indonesian government will provide a high level of support,
if required, in light of Pelindo II's strategic role and the
government full ownership of Pelindo II through the Ministry of State
Owned Enterprises (MSOE)," says Ray Tay, a Moody's
Vice President and Senior Analyst.
"The outlook on the Pelindo III's ratings remains stable.
These ratings already incorporate one notch of uplift reflecting Pelindo
III's important maritime role in Indonesia. Our expectation
of support for Pelindo III, in case of need, is such that
a one notch uplift in the rating remains appropriate. As such,
its ratings would be upgraded only if its baseline credit assessment improves,"
adds Tay.
The methodologies used in Pelindo II and Pelindo III were Privately Managed
Port Companies published published in September 2016, and Government-Related
Issuers published in October 2014. The methodologies used in PGN,
PLN and Majapahit Holding BV were Regulated Electric and Gas Utilities
published in December 2013, and Government-Related Issuers
published in October 2014. Please see the Rating Methodologies
page on www.moodys.com for a copy of these methodologies.
Established in 1965, Perusahaan Gas Negara (P.T.)
(PGN) is primarily engaged in the transmission and distribution of natural
gas. Its transmission business is mainly operated under its 60%-owned
PT Transportasi Gas Indonesia (unrated). Its distribution business
achieved a strong 83% share of total volumes in Indonesia in 2015.
The Indonesian government, through the MSOE, owns 57%
of the company.
Perusahaan Listrik Negara (P.T.) (PLN) is the dominant operator
of generation plants, transmission and distribution (T&D) networks.
Its transmission network covered around 41,683ckm and its distribution
network covered 943,573ckm at end-2015. PLN is also
the country's largest electricity producer, with a capacity of around
43.9GW, which accounted for 83.5% of the market
at end-2015. It is the sole offtaker for Indonesia's independent
power producers.
Pelabuhan Indonesia II (Persero) (P.T.) (Pelindo II)—also
known as the Indonesian Port Corporation (IPC)—is Indonesia's largest
port operator, with 12 ports across 10 provinces in Western Java,
Sumatra and Kalimantan. Pelindo II handled container throughput
of 6.2 million 20-foot equivalent units (TEUs) in 2016.
In 2015, the company handled about 45% of Indonesia's entire
container throughput. It also operates Indonesia's largest and
busiest container port, Tanjung Priok in Jakarta, which handled
over 5.5 million TEUs in 2016. The port is also Indonesia's
main international container gateway.
Pelabuhan Indonesia III (Persero) (P.T.) (Pelindo III) is
Indonesia's second largest port operator with 43 ports across seven provinces
in central and eastern Indonesia. It handled container throughput
of 4.6 million TEUs in 2016. In 2015, the company
handled about 33% of Indonesia's entire container throughput.
It operates the Tanjung Perak port, Indonesia's second busiest container
port, which handled 3.3 million TEUs in 2016.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Ray Tay
Vice President - Senior Analyst
Project & Infrastrucutre Finance
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Terry Fanous
MD-Public Proj & Infstr Fin
project & Infrastructure Finance
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077