Moody's may lift Excelcomindo Pratama

Moody's Investors Service said it placed the Ba3 local currency corporate family rating for PT Excelcomindo Pratama and the B1 foreign currency rating for Excelcomindo Pratama's guaranteed debt on review for possible upgrade.

The agency said the rating action follows Khazanah attaining 16.8% direct ownership in Excelcomindo Pratama through Excelcomindo's recently completed IPO and the increased likelihood that Telekom Malaysia Bhd.'s (TMB, rated A2) will execute its plan to move to a majority shareholding in Excelcomindo Pratama.

Moody's noted the ratings assigned to Excelcomindo Pratama reflect the application of Moody's new rating methodology for government-related issuers, including a baseline credit assessment of 6, A2 foreign currency rating of TMB, low dependence and low support.

The current low dependence reflects the low correlation between the credit profile of TMB and the future evolution of the Indonesian economy and Excelcomindo Pratama's operating environment, the agency added.

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