...The Standalone Credit Profile (SCP) of PT Pertamina (Persero) was raised to `bbb' from `bbb-' in May 2026 due to improvement in the timeliness of the Indonesian government's compensation payments to Pertamina for selling certain fuels below market prices, after a new regulation took effect in November 2025. This lowers the risk to Pertamina's robust financial profile, underpinned by an EBITDA net leverage of below 1x as of end-2025. The SCP also benefits from the group's large scale and vertically integrated operations. The Negative Outlook on Pertamina's Issuer Default Rating (IDR) reflects the risk of a downgrade of Indonesia's sovereign rating (BBB/Negative), which will constrain Pertamina's rating in the absence of limits on the government's access to the national oil company's cash and assets, under Fitch Ratings' Government-Related Entities (GRE) Rating Criteria. We look through the direct 100% owner, Indonesian sovereign wealth fund Danantara, to the sovereign while applying the...
