Fitch rates Excelcomindo notes AA(ind)

Fitch Ratings said it assigned a national long-term rating of AA(idn) to Indonesia-based PT Excelcomindo Pratama Tbk., along with an expected AA(ind) rating to its proposed Rp1.5 trillion five-year senior unsecured notes expiring in 2012. The expected rating is conditional on the final terms being similar to those presented to the agency.

The outlook is stable.

The ratings reflect Excelcomindo's entrenched position in the Indonesian cellular industry, highly cash generative operations and robust growth prospects, Fitch said. The ratings also draw support from its majority ownership by Telekom Malaysia (rated A- with stable outlook), which would provide financial and operational support, the agency said.

Fitch said the ratings are constrained by the company's continued vulnerability to foreign exchange risk and negative free flow position due to high capital expenditure requirements. The ratings also take into consideration persistent regulatory uncertainty, the competitive industry and the country's slowly developing regulatory regime, the agency said.

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