Moody's affirms Excelcomindo

Moody's Investors Service said it affirmed PT Excelcomindo Pratama Tbk's Ba2 local-currency issuer rating and senior unsecured foreign-currency rating, along with its national scale rating of Aa1.id.

The outlook is stable.

The affirmation is in response to the company's consent solicitation to amend certain terms of the bonds to facilitate a proposed sale of 7,000 towers, Moody's said.

The transaction will realize value on underutilized assets and allow the company to outsource the maintenance and upkeep on the towers to a third party, the agency said. It is anticipated that the proceeds from any tower sales will be received in the second quarter of 2008 and will be allocated towards capital expenditure requirements and debt repayment, Moody's said.

Also, a recently announced tender offer for up to $150 million bonds will reduce the company's potential withholding tax liability and benefit the bottom-line, the agency added.

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