Gas Negara Rated at AAA; Agung Podomoro Land Lowered to A-
On the rating front, Pemeringkat Efek Indonesia (Pefindo) has awarded AAA/Stable for state owned company, Perusahaan Gas Negara Tbk (PGAS:IJ), driven by its important role for Indonesian government, strong position in domestic transmission and distribution gas business supported by widespread pipeline network in Java and Sumatera. Furthermore, the company’s strong liquidity and stable gas demand cushion the rating profile and the risk lies in limited natural gas supply. Elsewhere, Agung Podomoro Land, Tbk (APLN:IJ) suffers rating downgrade given its rating was lowered by Pefindo to idA- (from idA) but the outlook was revised higher to stable from negative. The rating downgrade was driven by weakening capital structure and cash flow protection as a result of weak revenue from its property development due to late permit issuance and a slower progress than expected. Pefindo sees the condition will remain weak in the short to medium term.
