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More local companies may see their credit ratings upgraded after Standard & Poor’s raised the country’s sovereign rating, an analyst said.

On Monday, rating agency S&P raised the corporate credit ratings of three more Indonesian companies: state electricity utility PT Perusahaan Listrik Negara, state-owned PT Perusahaan Gas Negara and PT Telekomunikasi Selular (Telkomsel), the country’s biggest cellular network operator.

“The rating upgrades for corporates followed the national rating upgrade, so there will be more companies, mainly those that have a good financial performance, that will get upgrades,” said Purbaya Yudhi Sadewa, chief economist at the state-run Danareksa Research Institute.

S&P upgraded PLN’s foreign and local currency credit rating to BB with a “stable outlook” and lifted PGN’s foreign and local currency rating to BB with a “positive outlook.” Telkomsel’s foreign and local currency rating was upgraded to BBB- with a “stable outlook.”

On Friday, S&P raised Indonesia’s sovereign debt rating from BB- to BB with a “positive outlook,” meaning the country is now just two notches below S&P’s investment grade.

The agency said Indonesia’s debt could be upgraded again in the near future.

Also on Friday, S&P raised its ratings on the foreign currency debt of PT Bank Mandiri, PT Bank CIMB Niaga and PT Bank Internasional Indonesia to BB from BB-.

Aldian Taloputra, an economist at PT Mandiri Sekuritas, said the S&P’s sovereign upgrade had been expected as two other rating agencies — Moody’s Investors Service and Fitch Ratings — had earlier upgraded the country’s rating.

Moody’s upgraded Indonesia’s rating to Ba2 in September. Fitch upgraded the nation’s sovereign debt to BB+, one notch below investment grade, on Feb. 25.

S&P said the upgrades for PLN and PGN took into consideration the companies’ respective links to the government.

“This, along with their respective stand-alone credit profiles, influences our opinion of the companies’ need for and ability to benefit from extraordinary government support,” it said.

S&P said the rating action on Telkomsel reflected the sovereign debt upgrade and the company’s ability to generate adequate cash flow from operations, even under an economic and sovereign stress scenario.

Purbaya noted that rating agencies usually rate state-owned firms such as PLN and PGN in line with the national rating as the government fully guarantees all state company debts.

“Although PLN’s spending is bigger than its income, the default on any debt might not be happen as the government would take the responsibility for debt repayment,” he said.

PGN benefits from strong domestic demand for gas, which will boost its revenue, Purbaya said.

Telkomsel, he explained, also has promising earnings growth as the improving economy will help boost its subscriber base.

“The debt rating upgrades will lead to a decline in bond interest, which may prompt companies to raise fresh funds through bond issues,” Purbaya added.