Fitch ups Indosat to BB-

Fitch Ratings said it upgraded PT Indosat Tbk's long-term foreign-currency issuer default rating to BB+ from BB-, long-term local-currency issuer default rating to BBB- from BB- and its senior unsecured notes program to BB+ from BB-.

The outlook is stable.

The upgrade follows the completion of Qatar Telecom's tender offer for an additional 24.19% stake in Indosat and reflects strong operational and strategic ties between the companies, Fitch said.

As its largest overseas investment with good growth prospects, Indosat is of considerable strategic importance to Qatar Telecom, the agency said.

One of the reasons for a five notch differential between Indosat's BBB- rating and Qatar Telecom's A+ rating is the absence of strong legal ties, such as a guarantee, between the two entities, Fitch said.

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