Six SOEs on Positive Outlook at Fitch; 1 Rating Upgrade at Pefindo
On the rating front, Fitch has raised the outlook on 6 Indonesia stated owned companies to positive following its revision on the country’s sovereign rating. The SOEs whose outlook being revised to positive are; i) Perusahaan Listrik Negara (PLN), ii) Perusahaan Gas Negara, Tbk (PGAS IJ), iii) Telekomunikasi Indonesia, Tbk (TLKM IJ), iv) Pertamina, v) Pelindo II and vi) Pelindo III. We view that those companies have strategic business hence likely to receive strong support from the government.
Eximbank on Positive Outlook; PPRO Outlook Revised to Negative
BFI Finance’s Outlook Revised to Positive
MNC Investama on Negative Outlook
Muted Reaction on Outlook Upgrade by Fitch
Four Government mission to Indonesia at a meeting of the IMF-World Bank
Elsewhere, Pemeringkat Efek Indonesia (Pefindo), a local rating agency raised rating for Reasuransi Indonesia Utama (Indonesia Re) by one notch to idAA with stable outlook. Indonesia Re is one of the largest local reinsurance company with its asset amounted to IDR6.9trn in 9M16. The upgrade was driven by the company’s important role to support government mission in broadening reinsurance coverage in Indonesia as the company is controlled and wholly owned by the government. Pefindo also assigned 2 new ratings over the week; i) PT Bank Mega, Tbk (MEGA:IJ) rated at idA+/Stable and J Resources Asia Pasifik, Tbk (PSAB:IJ) at idA/Stable. The latter is the largest gold mining listed company in Indonesia with the asset amounted to USD810mn as at September 2016.
