PEFINDO has assigned its idAA- rating for PT Barito Renewable Energy Tbk with a stable outlook

(March 22, 2024)--PEFINDO has assigned its idAA- rating for PT Barito Renewable Energy Tbk (BREN) with a stable outlook. The rating reflects the Company’s very strong market position, solid earning visibility, and benefit from strong Government commitment for renewable energy development. Its moderate financial leverage and exposure to geological risk might constrain the rating.

The rating may be raised if BREN strengthens its business by significantly increasing its installed capacity, as well as maintaining high availability and capacity factors for all of its assets. This should be accompanied by a sustained improvement in the financial profile through deleveraging efforts and higher cash flow generation. The rating may be lowered if there is a persistent deterioration in its financial profile due to higher debt than projected without being compensated for by stronger cash flow generation.

Established in 2018, BREN (previously PT Barito Cahaya Nusantara) is a holding company owned by PT Barito Pacific Tbk. It is engaged in renewable power generation, including geothermal power business, through its operating assets of Wayang Windu, Salak, and Darajat. As of December 31, 2023, its shareholders consisted of PT Barito Pacific Tbk (64.7%), Green Era (23.6%, ultimately owned by Prajogo Pangestu), and the public (11.7%). (ends)