Singapore, April 13, 2018 -- Moody's Investors Service has taken a number of rating actions on five
Indonesian infrastructure issuers, following the earlier announcement
that it had upgraded Indonesia's sovereign rating to Baa2 with outlook
stable from Baa3 with outlook positive on 13 April 2018.
For full details on Indonesia's sovereign rating action, please
refer to the webpage:
https://www.moodys.com/research/--PR_381846
As a result of the sovereign rating action, Moody's has upgraded
the ratings of the following issuers:
1) Perusahaan Listrik Negara (P.T.) (PLN): Upgraded
issuer rating and senior unsecured ratings to Baa2 from Baa3 and revised
outlook to stable from positive. The ba2 Baseline Credit Assessment
(BCA) has been affirmed. At the same time, Moody's has upgraded
the rating on the senior unsecured MTN programme of PLN to (P)Baa2 from
(P)Baa3. Moody's has also upgraded the senior unsecured rating
for the bond issued by Majapahit Holding BV, a wholly owned and
guaranteed subsidiary of PLN, to Baa2 from Baa3. The outlook
is revised to stable from positive.
2) Perusahaan Gas Negara (P.T.) (PGN): Upgraded issuer
and senior unsecured ratings to Baa2 from Baa3 and revised outlook to
stable from positive.
3) Jasa Marga (Persero) Tbk (PT) (Jasa Marga): Upgraded issuer and
senior unsecured ratings to Baa2 from Baa3 and revised outlook to stable
from positive. The ba2 BCA has been affirmed.
4) Pelabuhan Indonesia II (Persero) (P.T.) (Pelindo II):
Upgraded issuer and senior unsecured ratings to Baa2 from Baa3 and revised
outlook to stable from positive. The ba1 BCA has been affirmed.
On the other hand, Pelabuhan Indonesia III (Persero) (P.T.)
(Pelindo III)'s Baa3 foreign currency issuer and senior unsecured
ratings, and ba1 BCA are not affected by the upgrade of Indonesia's
sovereign rating. The outlook on the ratings remains stable.
RATINGS RATIONALE
The upgrade in the ratings of PLN, Pelindo II and Jasa Marga follows
the upgrade in the sovereign rating to Baa2 from Baa3. The upgrade
of PGN's ratings follows the upgrade of the rating of its parent
- Pertamina (Persero) (P.T.) - to Baa2 from
Baa3, following the sovereign upgrade.
"PLN's ratings upgrade 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,"
says Abhishek Tyagi, a Moody's Vice President and Senior Analyst.
As such, the ratings incorporate our expectation of very high level
of support from the government.
"PGN's ratings upgrade reflects the company's leading
position in Indonesia's gas transmission and distribution sector,
and our expectation that PGN will continue to receive support from the
Government of Indonesia, which may be through Pertamina,"
adds Tyagi.
"Jasa Marga's ratings upgrade reflects our expectation of
high likelihood of support from the Government of Indonesia in times of
need. This is in light of majority ownership by the government
and Jasa Marga's critical role in Indonesia's plan to develop the
country's transport infrastructure, particularly the toll
roads sector," says Ray Tay, a Moody's Vice President and
Senior Credit Officer.
"The upgrade in Pelindo II's ratings reflects its strategic
role as the key international maritime gateway for Indonesia, given
its control of Port of Tanjung Priok in Jakarta, which is of high
strategic importance. As such, the rating reflects our expectation
of high likelihood of support from the government, if required,
in light of this strategic role and the government's full ownership
of Pelindo II through the Ministry of State Owned Enterprises (MSOE),"
says Spencer Ng, a Moody's Vice President and Senior Analyst.
"Pelindo III's ratings and their outlook are unaffected by
the sovereign upgrade. This is because Pelindo III's ratings
already incorporate one notch of uplift which reflects its important maritime
role in Indonesia, and our expectation of strong likelihood of support
from the government in case of need," adds Ng. The
one notch of uplift remains appropriate.
The principal methodologies used in rating Pelabuhan Indonesia II (Persero)
(P.T.) were Privately Managed Port Companies published in
September 2016, and Government-Related Issuers published
in August 2017. The principal methodologies used in rating Perusahaan
Listrik Negara (P.T.) and Majapahit Holding BV were Regulated
Electric and Gas Utilities published in June 2017, and Government-Related
Issuers published in August 2017. The principal methodologies used
in rating Jasa Marga (Persero) Tbk (PT) were Privately Managed Toll Roads
published in October 2017, and Government-Related Issuers
published in August 2017. The principal methodology used in rating
Perusahaan Gas Negara (P.T.) was Regulated Electric and
Gas Utilities published in June 2017. 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 company (unrated). Its distribution
business achieved a strong 74% share of total volumes in Indonesia
in 2017. After its recently announced reorganization, Pertamina
(Persero) (P.T.) (Pertamina, Baa2 stable) now owns
a 56.96% stake in PGN. The Government of Indonesia
still holds a golden share in PGN directly, giving it veto powers
on critical corporate decisions.
Perusahaan Listrik Negara (P.T.) (PLN) is the dominant operator
of generation plants, and transmission and distribution (T&D)
networks. Its transmission network covered around 48,901ckm
and its distribution network covered around 1,028,679ckm at
the end of 2017. PLN is also the country's largest electricity
producer, with a capacity of around 42.7GW, which accounted
for 77.1% of the market at the end of 2017. 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 a container throughput
of 6.9 million 20-foot equivalent units (TEUs) in 2017,
equivalent to about 45% of Indonesia's entire container throughput
in that year. It also operates Indonesia's largest and busiest
container port, Tanjung Priok in Jakarta, which handled over
6.07 million TEUs in 2017. The port is 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 a container throughput
of 4.9 million TEUs in 2017, equivalent to about 37%
of Indonesia's entire container throughput in that year. It operates
the Tanjung Perak port, Indonesia's second busiest container port,
which handled 3.55 million TEUs in 2017.
Jasa Marga (Persero) Tbk (PT) (Jasa Marga) is a listed company that is
70% owned by the Government of Indonesia. The government's
shareholding has remained at the same level since the company's initial
public offering in 2007. As of December 2017, the company
operated 680km of toll roads in various parts of Indonesia, representing
62% of the country's toll roads in operation by length.
Jasa Marga's market share in terms of toll road transaction volume is
80%. In terms of total toll road concessions, it has
the right to build, own and operate 1,497km of toll roads
in total.
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.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
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 rating analyst and the Moody's legal entity that has issued
the ratings.
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.
Spencer Ng
Vice President - Senior Analyst
Project & Infrastructure Finance
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Terry Fanous
MD-Public Proj & Infstr Fin
Project & Infrastructure Finance
JOURNALISTS: 852 3758 1350
Client Service: 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
Client Service: 852 3551 3077
