Fitch Recalibrates Indonesian National Scale; Revises Ratings on Corporates

Fitch Ratings-Jakarta-27 March 2019: Fitch Ratings Indonesia has taken rating actions on non-financial corporates following the recalibration of its Indonesian national rating scale. The recalibration reflects changes in the relative creditworthiness among the country’s issuers following the upgrade of the Indonesia sovereign’s Long-Term Issuer Default Rating to ‘BBB’ from ‘BBB-‘ on 20 December 2017. The Outlook is Stable.

National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Indonesian national scale ratings are denoted by the unique identifier ‘(idn)’. Fitch adds this identifier to reflect the unique nature of the Indonesian national scale. National scales are not comparable with Fitch’s international ratings scales or with other countries’ national rating scales.

KEY RATING DRIVERS The recalibration of the Indonesian national rating scale has resulted in rating affirmations in some cases and the assignment of revision ratings to others. Revision ratings are used to modify ratings for reasons that are not related to credit quality.

Fitch Ratings Indonesia has taken the following rating actions:

PT Telekomunikasi Selular (Telkomsel) – National Long-Term Rating affirmed at ‘AAA(idn)’; Outlook Stable

PT Pupuk Indonesia (Persero) – National Long-Term Rating affirmed at ‘AAA(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AAA(idn)’

PT XL Axiata Tbk – National Long-Term Rating affirmed at ‘AAA(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AAA(idn)’

PT Indosat Tbk – National Long-Term Rating affirmed at ‘AAA(idn)’; Outlook Negative – National senior unsecured debt affirmed at ‘AAA(idn)’

PT Profesional Telekomunikasi Indonesia – National Long-Term Rating revised to ‘AA+(idn)’ from ‘AAA(idn)’; Outlook Stable – National senior unsecured debt revised to ‘AA+(idn)’ from ‘AAA(idn)’

PT Perusahaan Gas Negara Tbk – National Long-Term rating affirmed at ‘AA+(idn)’; Outlook Stable

PT Mayora Indah Tbk – National Long-Term Rating affirmed at ‘AA(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AA(idn)’

PT Sumber Alfaria Trijaya Tbk – National Long-Term Rating affirmed at ‘AA-(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AA-(idn)’

PT Sinar Mas Agro Resources and Technology Tbk – National Long-Term Rating revised to ‘AA-(idn)’ from ‘AA(idn)’; Outlook Stable – National senior unsecured debt revised to ‘AA-(idn)’ from ‘AA(idn)’

PT Ivo Mas Tunggal – National Long-Term Rating revised to ‘AA-(idn)’ from ‘AA(idn)’; Outlook Stable

PT Sawit Mas Sejahtera – National Long-Term Rating revised to ‘AA-(idn)’ from ‘AA(idn)’; Outlook Stable

PT Wijaya Karya (Persero) Tbk – National Long-Term Rating revised to ‘AA-(idn)’ from ‘AA(idn)’; Outlook Negative

PT Astra Otoparts Tbk – National Long-Term Rating affirmed at ‘AA-(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AA-(idn)’

PT Serasi Autoraya – National Long-Term Rating affirmed at ‘AA-(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘AA-(idn)’

PT Chandra Asri Petrochemical Tbk – National Long-Term Rating revised to ‘A+(idn)’ from ‘AA-(idn)’; Outlook Stable

PT Japfa Comfeed Indonesia Tbk – National Long-Term Rating revised to ‘A+(idn)’ from ‘AA-(idn)’; Outlook Stable – National senior unsecured debt revised to ‘A+(idn)’ from ‘AA-(idn)’

PT Tower Bersama Infrastructure Tbk – National Long-Term Rating revised to ‘A+(idn)’ from ‘AA-(idn)’; Outlook Stable – National senior unsecured debt revised to ‘A+(idn)’ from ‘AA-(idn)’

PT Sri Rejeki Isman Tbk – National Long-Term Rating affirmed at ‘A+(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘A+(idn)’

PT Ciputra Residence – National Long-Term Rating affirmed at ‘A+(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘A+(idn)’ – IDR300 billion bonds with partial credit guarantee affirmed at ‘AA-(idn)’

PT Tunas Baru Lampung Tbk – National Long-Term Rating affirmed at ‘A(idn)’; Outlook Stable

– National senior unsecured debt affirmed at ‘A(idn)’

PT Sawit Sumbermas Sarana Tbk – National Long-Term Rating affirmed at ‘A(idn)’; Outlook Stable

PT Waskita Karya (Persero) Tbk – National Long-Term Rating affirmed at ‘A(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘A-(idn)’

PT Geo Dipa Energi (Persero) – National Long-Term Rating affirmed at ‘A(idn)’; Outlook Stable

PT Aneka Gas Industri Tbk – National Long-Term Rating affirmed at ‘A-(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘A-(idn)’

PT Kawasan Industri Jababeka Tbk – National Long-Term Rating affirmed at ‘A-(idn)’; Outlook Stable

PT Golden Energy Mines Tbk – National Long-Term Rating affirmed at ‘A(idn)’; Outlook Positive

PT Pan Brothers Tbk – National Long-Term Rating revised to ‘A-(idn)’ from ‘A(idn)’; Outlook Stable

PT Berlina Tbk – National Long-Term Rating revised to ‘BBB+(idn)’ from ‘A-(idn)’; Outlook Negative

PT PP Properti Tbk – National Long-Term Rating affirmed at ‘BBB+(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘BBB+(idn)’

PT Sulfindo Adiusaha – National Long-Term Rating affirmed at ‘BBB-(idn)’; Outlook Stable

PT Multipolar Tbk – National Long-Term Rating revised to ‘BB(idn)’ from ‘BB+(idn)’; Outlook Negative

PT Greenwood Sejahtera Tbk – National Long-Term Rating affirmed at ‘BB(idn)’; Outlook Stable – National senior unsecured debt affirmed at ‘BB(idn)’

PT Lippo Karawaci TBK – Maintaining National Long-term Rating at ‘BB-(idn)’ with Rating Watch Positive

PT Tiphone Mobile Indonesia Tbk – National Long-Term Rating affirmed at ‘BB-(idn)’; Outlook Negative

PT Smartfren Tbk – National Long-Term Rating affirmed at ‘CCC(idn)’

For Fitch’s revised Indonesian national scale ratings on financial institution issuers, see Fitch Revises Ratings on 8 Indonesian Financial Institutions on National Scale Recalibration, published 27 March 2019.

Contact: Primary Analyst Olly Prayudi (PT Perusahaan Gas Negara Tbk, PT Multipolar Tbk) Director +62 21 2988 6812 PT Fitch Ratings Indonesia DBS Bank Tower 24th Floor, Suite 2403 Jl. Prof. Dr. Satrio Kav 3-5 Jakarta 12940

Rufina Tam (PT Sinar Mas Agro Resources and Technology Tbk, PT Ivo Mas Tunggal, PT Sawit Mas Sejahtera, PT Sawit Sumbermas Sarana Tbk, PT Tunas Baru Lampung Tbk) Associate Director +62 21 2988 6813

Salman Alamsyah (PT Wijaya Karya (Persero) Tbk, PT PP Properti Tbk, PT Kawasan Industri Jababeka Tbk, PT Lippo Karawaci TBK, PT Waskita Karya (Persero) Tbk, PT Sulfindo Adiusaha) Associate Director +62 21 2988 6818

Christie Pardede (PT Astra Otoparts Tbk, PT Indosat Tbk, PT Japfa Comfeed Indonesia Tbk, PT XL Axiata Tbk, PT Serasi Autoraya) Analyst +62 21 2988 6815

Arisyi Raz (PT Pan Brothers Tbk, PT Pupuk Indonesia (Persero), PT Sri Rejeki Isman Tbk, PT Sumber Alfaria Trijaya Tbk, PT Geo Dipa Energi (Persero)) Analyst +62 21 2988 6817

Guninta Sudiar (PT Aneka Gas Industri Tbk, PT Ciputra Residence, PT Greenwood Sejahtera Tbk, PT Tiphone Mobile Indonesia Tbk, PT Golden Energy Mines Tbk) Analyst +62 21 2988 8611

Astri Maharani (PT Smartfren Telecom Tbk, PT Telekomunikasi Selular (Telkomsel), PT Chandra Asri Petrochemical Tbk) Analyst +62 21 2988 6811

Fadil Marthias (PT Berlina Tbk, PT Profesional Telekomunikasi Indonesia, PT Tower Bersama Infrastructure Tbk, PT Mayora Indah Tbk) Analyst +62 21 2988 8529

Committee Chairperson Vicky Melbourne Senior Director +61 2 8256 0325

Note to editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(idn)’ for National ratings in Indonesia. Specific letter grades are not therefore internationally comparable.

Media Relations: Peter Hoflich, Singapore, Tel: +65 6796 7229, Email: peter.hoflich@thefitchgroup.com Leslie Tan, Singapore, Tel: +65 6796 7234, Email: leslie.tan@thefitchgroup.com

Additional information is available on www.fitchratings.com Applicable Criteria Corporate Hybrids Treatment and Notching Criteria (pub. 09 Nov 2018) Corporate Rating Criteria (pub. 19 Feb 2019) Corporates Notching and Recovery Ratings Criteria (pub. 23 Mar 2018) National Scale Ratings Criteria (pub. 18 Jul 2018) Parent and Subsidiary Rating Linkage (pub. 16 Jul 2018) Sukuk Rating Criteria (pub. 25 Jul 2018) Third-Party Partial Credit Guarantees Rating Criteria (pub. 27 Jun 2018)

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