S&P boosts Excelcomindo Pratama, bonds

Standard & Poor's said it raised its corporate credit rating on PT Excelcomindo Pratama Tbk, to BB- from B+. The outlook is stable.

At the same time, the agency said it raised the issue rating on the $350 million bonds due Jan. 27, 2009, issued by the company's wholly owned subsidiary, Excelcomindo Finance Co. BV, to BB- from B+.

S&P noted the rating upgrade reflects the possible financial support that Telekom Malaysia Berhad (foreign currency A-/stable, local currency A/stable) may provide, following Telekom Malaysia's increased shareholding in Excelcomindo Pratama to 56.9% in October.

However, the agency added risks include expected deterioration in capital structure as the company's capital structure is likely to become more aggressive in the near term.

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