Moody’s Investors Service has revised the outlook on power producer Cikarang Listrindo (POWR) ratings to positive from stable. In addition, Moody’s has affirmed the company’ Ba2 corporate family and senior unsecured bond ratings.

“The positive outlook reflects the continued improvement in Cikarang’ business profile, and our expectation that the company will maintain a solid financial profile and strong liquidity,” says Spencer Ng, a Moody’s senior analyst in a written statement release today.

Over the last three years, the power produder has successfully commissioned and ramped up its 280 megawatt (MW) coal-fired power station. At the same time, the company’ power sales have grown to 5,108 gigawatt hours (GWh) in 2018 from 4,801 GWh in 2016.

Moody’s estimates that the producer’ retained cash flow over the debt will stay between 14 percent and 17 percent over the next two years, assuming that management will continue to maintain a dividend payout ratio of around 64 percent. And the company’ growth plans — which will focus on organic opportunities– will be funded without incurring additional debt.

Cikarang continues to benefit from stable cash flow generation, underpinned by its exclusive licenses to supply electricity in five industrial estates with over 2,400 industrial customers, its solid operating record, and the supportive features in its long-term power supply agreements with customers, which help mitigate its exposure to fluctuations in fuel costs.