Paiton Energy bonds rated

Paiton Energy bonds rated

MELBOURNE (Reuter): Standard & Poor's Corp said it has
assigned a BBB rating to Indonesia's Paiton Energy Funding BV's
US$180 million senior secured bonds due 2014.

The ratings agency the outlook for the group was stable.

The bonds will be guaranteed by PT Paiton Energy Co, a limited
liability Indonesian established to develop, construct, own and
operate a US$2.5 billion 1,230 megawatts coal-fired power plant
located in East Java, Indonesia, S&P said.

The rating outlook partly reflects the risks that over three
years of construction remain to be completed before the
commercial operation of the project.

But the risks are partly offset because the project helps
fulfill a strategic need for increased electric generating
capacity in Indonesia.