Fitch ups Axiata

Fitch Ratings said it upgraded XL Axiata's long-term foreign- and local-currency issuer default ratings to BB+ from BB.

The outlook is positive.

The upgrade reflects the company's significantly improved financial performance in 2010, with revenues and EBITDAR growing 27% and 50%, respectively, Fitch said.

Margins improved in 2010 due to higher revenues, lower network costs and the company's focus on cost efficiencies, the agency said.

The ratings are constrained by expectations that competition within the sector would likely intensify, particularly from Indosat which is likely to step up its product offering, Fitch said.

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