Dec 1, 2010

PGN reviewed for possible upgrade

Moody's Investors Service has placed PT Perusahaan Gas Negara Tbk (PGN) Ba2 corporate family rating on review for possible upgrade.
The rating action follows Moody's decision to place the Indonesian government's Ba2 rating on review for possible upgrade.
"Driven by its solid operating profile, strong market position, favorable trends in gas demand, and the relatively stable nature of the transmission and distribution business, PGN's credit rating is strongly positioned at the Ba2 level." said Jennifer Wong, a Moody's AVP/Analyst, in a press release today.
"The rating also considers PGN's very high dependence and strong support from the Indonesian Government , given the Ministry of State Owned Enterprises' (MSOE) 57% ownership, and its strategic importance as the country's main distributor of natural gas. As such, the potential upgrade in Indonesian Government's rating will impact PGN's rating as well," said Wong.
The last rating action on PGN was on June 21, 2010, when Moody's changed the outlook of PGN's corporate family rating from stable to positive. The principal methodology used in this rating was Moody's Regulated Electric and Gas Utilities published in August 2009.
Established in 1965, Perusahaan Gas Negara (PGN) is primarily engaged in the transmission and distribution of natural gas.
Its transmission business mainly operates under its 60%-owned subsidiary, PT Transportasi Gas Indonesia (TGI), while its distribution business has a strong market share of over 87%.

Disclosure: No position at the stock mentioned above.
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