Fitch may upgrade Excelcomindo Pratama

Fitch Ratings said it placed PT Excelcomindo Pratama Tbk.'s BB- long-term foreign- and local-currency issuer default ratings on Rating Watch positive to reflect the potential for increased support.

Fitch said it expects to resolve the watch upon the successful completion of XL's planned $300 million rights issue by December, most likely with a one-notch upgrade in its ratings.

The ratings reflect its entrenched third position in the Indonesian cellular sector, good growth prospects and strategic importance to Malaysian parent, Axiata Group Bhd, as its largest overseas investment.

Its key financial measures weakened significantly recently with its net adjusted leverage rising to 3.3x from 2.5x year-over-year, the agency added.

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