Fitch affirms Indosat

Fitch Ratings said it affirmed PT Indosat Tbk's long-term foreign-currency and local-currency issuer default ratings at BBB-. Fitch also said it assigned an expected rating of BBB- to the proposed fixed-rate senior unsecured notes due 2020 to be issued by subsidiary Indosat Palapa Co. BV, which is guaranteed by Indosat.

The outlook is stable.

The ratings are contingent upon receipt of final documents.

The ratings incorporate a three notch uplift from its standalone rating of BB- to reflect a strong parent-weak subsidiary relationship with Qatar Telecom, which has 65% beneficial ownership in Indosat, Moody's said.

The company's standalone ratings reflect its entrenched second position in the Indonesian telecommunications sector with diversified revenue streams, the agency said, and highly cash-generative operations.

The ratings are constrained by its significant capital expenditure program resulting in negative free cash flow, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.