Moody's: Indosat view to negative

Moody's Investors Service said it revised to negative from stable the outlook on PT Indosat Tbk's Ba1 corporate family ratings and senior unsecured ratings.

The outlook revision is driven by an expectation that Indosat's adjusted debt-to-EBITDA will rise above 3x and remain there for a prolonged period, Moody's said, and that financing requirements during 2010 will increase the company's proximity to financial covenants.

The agency said Indosat's operating performance is expected to improve over the coming year, but the improvement in revenues, EBITDA, and resulting cash flows will not be sufficient to lower leverage to less than 3x during 2010.

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