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.