S&P rates PT Mobile-8 notes B

Standard & Poor's said it assigned its B long-term corporate credit rating to PT Mobile-8 Telekom Tbk, along with a B rating to the proposed $150 million senior unsecured notes to be issued by Mobile-8 Telecom Finance BV, a wholly owned subsidiary. The ratings are subject to final documents.

The outlook is stable.

The ratings reflect Mobile-8's aggressive capital expenditure plan, the company's highly leveraged financial risk profile and its role as a small player in a scale sensitive industry, S&P said.

These weaknesses are partly offset by Mobile-8's strong subscriber growth, albeit starting from a small base, prospects of continuing favorable domestic wireless subscriber growth and the company's favorable debt maturity profile, the agency said.

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