Fitch turns Indosat view to positive

Fitch Ratings said it revised the outlook on PT Indosat Tbk.'s long-term foreign- and local-currency issuer default ratings to positive from stable and affirmed the IDRs and the senior unsecured rating at BBB-.

Fitch Ratings Indonesia concurrently affirmed the national long-term rating and the rating on all outstanding rupiah-denominated senior unsecured bonds and sukuk at AA+(idn). The outlook on the national long-term rating is Stable.

“The positive outlook on the IDRs reflects Fitch's view that Indosat's EBITDA net leverage is likely to remain below 1.3x, the threshold below which we would consider positive rating action. Rating headroom has improved and we expect the company's rating to withstand the impact from 5G spectrum costs and higher 5G-related capex,” the agency said in a press release.

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