Strong Fundamental Performance, Moody's Upgrades PGN's Rating to "Baa2"

Jakarta – PT PGN Tbk (PGN),

As Pertamina’s Gas Subholding, PGN has successfully improved its standalone Baseline Credit Assessment (BCA) from baa3 to baa2 by Moody’s Ratings (Moody’s). Additionally, PGN has maintained its consolidated credit rating at Baa2 with a Stable Outlook.

This upgrade reflects PGN’s consistency in maintaining financial health and stability, supported by the successful repayment of bonds in the second quarter of 2024 and strong operational performance.

In its report, Moody’s noted that PGN’s Retained Cash Flow (RCF) to debt ratio reached 48% as of September 30, 2024, up from 35% in 2022. This performance exceeded the threshold required for a BCA rating upgrade.

"This upgrade reflects our expectation that PGN will consistently maintain its financial metrics, primarily driven by stable operational and financial performance along with debt reduction efforts," said Erman Zhang, Analyst at Moody’s Ratings.

PGN’s Finance Director, Fadjar Harianto Widodo, added, “Moody’s confidence in PGN’s financial stability and fundamentals is proof of our commitment to contributing to national energy security through innovation, efficiency, and sustainable growth.”

PGN remains committed to continuing its strategic capital expenditure (capex) program with an approach focused on investment optimization. Priority projects include the development of LNG infrastructure as well as gas transmission and distribution, which have a direct impact on the company’s revenue growth.

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