Moody's: No change for Indosat

Moody's Investors Service said news that PT Indosat Tbk's intends to solicit consent from creditors to loosen the debt/equity covenant and liken the financial definitions of the covenants across the company's different debt instruments, will have no immediate impact on its Ba1 local-currency corporate family and Ba2 senior unsecured ratings.

Moody's said that no consent will be solicited on the $234.7 million 7 ¾% bonds due 2010 issued by Indosat Finance Company BV (rated Ba2), or on the $109.4 million 7.125% bonds due 2012 issued by Indosat International Finance Company BV (rated Ba2).

Under the proposed covenant amendment, the debt/equity covenant will be increased to 2.50x from the current level of 1.75x. Moody's said the amendment will provide the company with flexibility against non-cash losses resulting from potential rapid and volatile changes in the rupiah and dollar exchange rate.

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