Fitch affirms Indonesia’s PLN at ‘BBB’

Fitch Ratings maintained Indonesia’s PT Perusahaan Listrik Negara (Persero) (PLN) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BBB’ with a Stable Outlook.

The agency also confirmed the ‘BBB’ senior unsecured rating on PLN’s medium-term note programme and notes issued under it, as well as the US dollar notes issued by PLN’s subsidiary Majapahit Holding BV and guaranteed by PLN.

PLN’s rating is aligned with Indonesia’s (BBB/Stable) due to Fitch’s Government-Related Entities (GRE) Rating Criteria, indicating strong government support for the state electricity company.

With a ‘bb+’ Standalone Credit Profile (SCP), PLN operates as a key player in Indonesia’s electricity sector, holding a monopoly in transmission and distribution and a significant role in power generation.

Attribution: Fitch Ratings report

Subediting: M. S. Salama