Fitch revises Indosat's view to stable

Fitch Ratings said it revised PT Indosat Tbk.'s outlook to stable from negative. The agency also affirmed the company's long-term foreign- and local-currency issuer default ratings and the foreign-currency senior unsecured rating at BBB. Fitch also revised the outlook to stable from negative and affirmed the national long-term rating at AAA(idn).

The outlook revision reflects a faster-than-expected pace of deleveraging due to Indosat's rapid EBITDA recovery, stemming from stronger revenue growth and its cost reduction efforts. However, free cash flow is likely to remain negative over the next two years in light of the significant capital expenditure investments.

Fitch said it expects leverage – measured as adjusted net debt/operating EBITDAR – to be below 4x, the level above which Fitch is likely to take a negative rating action.

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