Fitch affirms Excelcomindo Pratama

Fitch Ratings said it affirmed PT Excelcomindo Pratama Tbk's long-term foreign-currency and local-currency issuer default ratings at BB-, along with the BB- rating on its senior unsecured notes program.

The outlook remains stable.

The ratings reflect the company'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 to the former, the agency added.

The ratings are constrained by continued vulnerability to foreign-exchange risk and negative free cash flow position due to high capital expenditure requirements, Fitch said, and intense competition in the industry.

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