...PT Pertamina Hulu Energi (PHE) is rated on a standalone basis, as its Standalone Credit Profile (SCP) of 'bbb' is on a par with the Issuer Default Rating (IDR) of its parent, PT Pertamina (Persero) (Pertamina, BBB/Negative). The Negative Outlook reflects the Outlook on Pertamina's rating. A downgrade of Pertamina's rating will constrain PHE's IDR below its SCP of 'bbb'. The Negative Outlook on Pertamina's rating is based on an equalisation with Indonesia's (BBB/Negative) sovereign rating. PHE's SCP is underpinned by its robust business profile, driven by its production scale, healthy reserves and solid financial metrics. These strengths are offset partly by limited diversification outside Indonesia, and Fitch Ratings' expectation that the financial profile will weaken in 2027-2028 due to capex exceeding cash flow from operations (CFO)....
