Moody's lowers Indosat Ooredoo view to negative

Moody's Investors Service said it revised the outlook on PT Indosat Tbk.'s (lndosat Ooredoo) to negative from stable.

Moody's also said it affirmed the company's Baa3 issuer rating.

The negative outlook reflects a weakening in Indosat's financial metrics driven by the company's plans for accelerated 4G capex amid an intensely competitive operating environment for the Indonesian mobile sector, the agency said.

Indosat Ooredoo's operating and financial profile has weakened significantly over past quarters, mainly due to the introduction of registration for pre-paid SIM cards in Indonesia and a more rapid decline in traditional voice and SMS revenue in 2018, Moody's said.

Although the Indonesian mobile sector remains intensely competitive, there has been some uptick in quarter-on-quarter ARPUs and revenue growth, the agency said.

Indosat Ooredoo's liquidity position is strained, Moody's noted.

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