Fitch lowers Excelcomindo

Fitch Ratings said it downgraded PT Excelcomindo Pratama Tbk's national long-term rating to AA-(idn) from AA(idn), along with the rating on its outstanding Rp 1.5 trillion senior unsecured notes to AA-(idn) from AA(idn).

The outlook is stable.

The action reflects the weakening of the company's key financial measures during 2008, with net adjusted leverage rising to 3.3x in 2008 from 2.5x in 2007, Fitch said, and funds from operations by gross interest expense declining to 4.2x from 5.9x over the same period.

The deterioration was mainly due to large network investments in 2008, which entailed cash-capital expenditure of Rp 11.4 trillion funded predominantly from bank facilities, the agency said.

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