S&P ups Media Nusantara

Standard & Poor's said that it raised the long-term corporate credit rating on PT Media Nusantara Citra Tbk. to BB- from B+ and the issue rating on Media Nusantara's guaranteed $142.7 million of senior secured notes due Sept. 12 to BB- from B+.

The outlook is stable.

S&P raised the ratings to reflect the view that the company can sustain the recent improvement in its financial performance, the agency said. In the 12 months ended March 31, Meidan Nusantara's revenues rose 23% year over year, its EBITDA margin strengthened to 30.5% from 22.9% and its cash flows recovered.

The improvement contrasts with the previous expectation that the global financial crisis could have a negative impact on the Indonesian advertising industry, the agency added.

The ratings reflect the company's dependence on its flagship channel PT Rajawali Citra Televisi Indonesia, its exposure to business concentration in Indonesia, an intensely competitive industry and advertising budgets that are inherently sensitive to the economic environment, S&P said.

Good financial performance and strengthening debt protection measures partly offset the weaknesses, the agency added.

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