Moody's may upgrade MGTI Finance

Moody's Investors Service said it placed on review for possible upgrade the B2 foreign currency senior secured bond rating of MGTI Finance Co. Ltd., guaranteed by P.T. Mitra Global Telekomunikasi Indonesia (MGTI) and MGTI Finance BV, and the Ba3 local currency senior implied rating of MGTI.

The review of the Ba3 local currency rating has been prompted by P.T. Telekomunikasi Indonesia's (Telkom Indonesia) Ba3 local currency issuer rating being placed on review for possible upgrade.

Moody's said the local currency rating of MGTI reflects its cash flow is backed by the investor revenues payable monthly by KSO IV under the amended KSO agreement as well as Telkom Indonesia's undertaking that it will cover any shortfalls in the investor revenues.

P.T. Mitra Global Telekomunikasi Indonesia (MGTI), based in Semarang, Indonesia, was established in 1995. Its purpose is to build fixed telecommunications lines in Central Java and the special district of Jogjakarta through KSO IV.

P.T. Telekomunikasi Indonesia Tbk, based in Bandung, is Indonesia's incumbent fixed-line telecommunications-service provider and the majority shareholder of P.T. Telekomunikasi Selular, the country's leading cellular-services provider.

© 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.