Jan 17, 2011

Moody's upgrades PLN to Ba1

Moody's Investors Service has upgraded PT Perusahaan Listrik Negara's (PLN) corporate family rating and senior unsecured bond rating to Ba1 from Ba2.
The rating outlook is stable. This rating action follows Moody's decision to upgrade the Indonesian Government's rating to Ba1 from Ba2.
"Given PLN's 100% ownership by the Ministry of State-Owned Enterprises (MSOE), its strategic importance as Indonesia's only vertically integrated electricity utility, as well as ongoing government support through subsidies to ensure its financial viability and operational soundness, Moody's considers PLN's rating to be closely integrated with, and strongly linked to, the government's credit quality," said Jennifer Wong, a Moody's AVP/Analyst, in a press statement today.
"Accordingly, an upgrade in the Indonesian Government's rating has led to an upgrade in PLN's rating," added Wong.
Moody's last rating action with regard to PLN occurred on 1 December 2010, when the ratings were put under review for possible upgrade.

Disclosure: No position at the stock mentioned above.

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