S&P lowers Bakrie Telecom

Standard & Poor's said it lowered its long-term corporate credit rating on PT Bakrie Telecom Tbk. to CCC from B-. The outlook is negative.

S&P also lowered the long-term Asean regional scale rating on the company to axCCC from axB.

At the same time, S&P lowered its rating on the senior unsecured notes due 2015 that Bakrie Telecom Pte. Ltd. issued to CCC from B-.

"We lowered the ratings because BTEL is likely to continue to face significant liquidity pressure over the next 12 months," said S&P credit analyst Suzanne Smith in a news release.

The company has not disclosed its plans to bridge a funding gap of about $100 million over the next 12 months. Nevertheless, S&P said it expects BTEL to meet the semiannual interest payment of about $20 million that is due on May 7.

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