JAKARTA: Moody's Investors Service has today upgraded the Indonesian government's foreign and local-currency bond ratings and five state-owned companies rating to Ba1, from Ba2.The upgrade rating was implemented after Moodys raised the government's foreign and local-currency bond ratings yesterday. Beside those five companies, Moodys also raised the foreign currency long-term deposit ratings of 10 Indonesian banks.The five state-owned companies are PT Perusahaan Gas Negara Tbk (PGN), PTTelekomunikasi Indonesia Tbk, PT Telkomsel, PT Perusahaan Listrik Negara (PLN), and PT Semen Gresik Tbk."PGN is also supported by solid operating profile, dominant market position, favorable trends in gas demand, and the relatively stable nature of the transmission and distribution business, PGN's baseline credit assessment is strongly positioned at the Ba2 level,"said Moody's AVP-Analyst Jennifer Wong on the rating agency's press release published yesterday.She said the rating also considers PGN's very high dependence on and strong support from the Indonesian Government , given the Ministry of State Owned Enterprises' (MSOE) 57% ownership, and its strategic importance as the country's main distributor of natural gas. As such, the upgrade in Indonesian Government's rating has led to an upgrade of PGN's rating,Perusahaan Gas Negara (PGN) is primarily engaged in the transmission and distribution of natural gas. Its transmission business mainly operates under its 60%-owned subsidiary, PT Transportasi Gas Indonesia (TGI), while its distribution business has a strong market share.Moody's also raised the ratings of Perusahaan Listrik Negara (PLN) and senior unsecured bond rating to Ba1 from Ba2 citing its strategic importance as Indonesia's only vertically integrated electricity utility, as well as ongoing government support through subsidies to ensure its financial viability and operational soundness.The closeness and support from the government also influenced Moody's on putting PLN in the same level of government debt rating.Moody's Investors Service also upgraded the corporate family rating of PT Semen Gresik Tbk to Ba1 from Ba2 as the impressive credit strength despite the company being part way through a major expansion programme, the first for over ten years.Moody's Lead Analyst Alan Greene noted that as of September 30, 2010, Semen Gresik reported cash of IDR3.4 trillion and borrowings of only IDR0.4 trillion."Furthermore, given the company's strong liquidity, we expect Semen Gresik's own credit profile to remain robust through 2011 and 2012, even as the company considers overseas acquisitions, and despite the upward pressure on energy costs", he said.Moody's Investors Service has raised the foreign currency long-term deposit ratings of 10 Indonesian banks to Ba2 from Ba3 with the stable outlooks, following the upgrade on Indonesias sovereign ratings.The 10 Indonesia banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan Negara and Pan Indonesia Bank (Panin). (t03/wiw)

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