S&P affirms double-C rating on Paiton

Standard & Poor's Corp. on Thursday affirmed its double-C rating on Paiton Energy Funding B.V.'s US$180 million senior secures bonds which are guaranteed by PT Paiton Enerfy Co.

The outlook remains negative, the ratings agency said.

The junk rating on the bonds reflects the ongoing difficulties the company faces, S&P added.

PT Paiton Energy is currently operating under an interim agreement with state-owned energy producer, PLN, where PLN purchases power from PT Paiton at a much lower price than stipulated in the original agreement between the two parties. (*)