{
    "success": true,
    "data": {
        "id": 1028784,
        "msgid": "pefindo-assigns-a-rating-to-pln-1447893297",
        "date": "1996-11-18 00:00:00",
        "title": "Pefindo assigns 'A' rating to PLN",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Pefindo assigns 'A' rating to PLN JAKARTA (JP): Indonesia's Pefindo credit-rating agency has reaffirmed its \"A\" long-term rating for both Bond IV, and Bond V, amounting to Rp 680 billion (US$290.6 million), and Rp 1 trillion, respectively. The bonds are issued by the State Electricity Company (PLN). The \"A\" rating means PLN debt security has a low investment risk, supported by good capacity to pay all interest and principal on time, with low susceptibility to adverse changes.",
        "content": "<p>Pefindo assigns 'A' rating to PLN<\/p>\n<p>JAKARTA (JP): Indonesia's Pefindo credit-rating agency has<br>\nreaffirmed its \"A\" long-term rating for both Bond IV, and Bond V,<br>\namounting to Rp 680 billion (US$290.6 million), and Rp 1<br>\ntrillion, respectively.<\/p>\n<p>The bonds are issued by the State Electricity Company (PLN).<\/p>\n<p>The \"A\" rating means PLN debt security has a low investment<br>\nrisk, supported by good capacity to pay all interest and<br>\nprincipal on time, with low susceptibility to adverse changes.<\/p>\n<p>Pefindo announced the reaffirmation of the rating reflected<br>\nPLN's favorable standing, provided by the regulatory frameworks<br>\nand the company's monopolistic position in the market.<\/p>\n<p>The rating agency based its assessment on the healthy growth<br>\nof demand for electricity in Indonesia, and the PLN's strong<br>\nfinancial flexibility.<\/p>\n<p>\"We've also accounted for the company's lessening<br>\nprofitability, stable leverage and deteriorating liquidity,\"<br>\nPefindo said.<\/p>\n<p>PLN is currently facing pressure over its financial<br>\nperformance, which falls short of projected targets, accompanied<br>\nby apparent deteriorating liquidity.<\/p>\n<p>Pefindo noted PLN's crash programs in power generation in 1994<br>\nhad resulted in the deterioration.<\/p>\n<p>The rating agency foresees additional complexity to PLN<br>\nfinancial management, as a result of the privatization drive<br>\ninitiated by the government in the power generation sector.<\/p>\n<p>The privatization, and PLN's large investment programs for the<br>\n1996-2000 period, have combined to place PLN in a delicate<br>\nposition, since they must respond to various government agencies<br>\nand multi-lateral financial institutions, Pefindo noted.<\/p>\n<p>PLN's leverage is favorable, with the company's debt-to-equity<br>\nratio of 71 percent.<\/p>\n<p>However, the rating agency contends the ever-increasing<br>\ninvestment needs of the transmission and distribution sectors may<br>\nimpose a slight shift in PLN's current leverage position, as the<br>\ncompany is constantly pressured to increase self-financing.<\/p>\n<p>But Pefindo also sees positive development in cost management,<br>\nas reflected in the disciplinary programs initiated in inventory<br>\nmanagement. (vin)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/pefindo-assigns-a-rating-to-pln-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}