Pefindo lowers PLN rating

JAKARTA (JP): Local ratings agency Pefindo downgraded on Friday its ratings for state electricity and gas company PLN's bonds V and VI to idB from idBB.

Pefindo said in a statement that the downgrade reflected the increase in the company's dependence on government subsidies to support its operational activities and in servicing financial obligations.

It said the change in the rating was also made because PLN was not purchasing electricity from independent power producers, which started to supply electricity in 1999.

PLN's bond V, worth Rp 1 trillion, matures in 2001, and the Rp 600 billion bond VI matures in 2002. (hen)