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

PT PGN Tbk (PGN), as Pertamina’s Gas Subholding, successfully improved its standalone Baseline Credit Assessment (BCA) from baa3 to baa2 according to Moody's Ratings (Moody's). In addition, PGN has maintained its consolidated credit rating at the Baa2 level with a Stable Outlook.

This upgrade reflects PGN's consistency in maintaining financial health and stability, supported by the successful bond repayment in the second quarter of 2024 and its operational performance contributions.

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 the BCA rating upgrade.

"This upgrade reflects our expectation that PGN will consistently maintain its financial metrics, driven by stable operational and financial performance, along with debt reduction efforts," said Erman Zhang, Moody's Ratings Analyst (January 15, 2025).

PGN's Chief Financial Officer, Fadjar Harianto Widodo, added, "Moody's confidence in PGN's financial stability and fundamentals is a testament to our commitment to contributing to national energy resilience through innovation, efficiency, and sustainable growth."

PGN is committed to continuing its strategic capital expenditure (capex) programs with a focus on optimizing investments. Priority projects include the development of LNG infrastructure as well as natural gas transmission and distribution, which directly impact the company's revenue growth.

Meanwhile, VP of Corporate Communication at Pertamina, Fadjar Djoko Santoso, added that this credit rating upgrade enhances Pertamina's optimism about PGN's business growth and its positive impact on national economic growth. "Priority projects such as gas infrastructure will remain the company's focus, as these projects support gas supply for driving industries in Indonesia and achieving energy self-sufficiency," he explained.

As a leader in energy transition, Pertamina is committed to supporting the Net Zero Emission 2060 target by continuing to promote programs that directly contribute to the achievement of the Sustainable Development Goals (SDGs). All these efforts align with the implementation of Environmental, Social & Governance (ESG) principles across all Pertamina's business lines and operations.