Moody's affirms Mobile-8

Moody's Investors Service said it affirmed the B2 corporate family rating of PT Mobile-8 Telecom Tbk, along with the B2 rating for its $100 million senior unsecured 11 ¼% bond due 2013 issued by Mobile-8 Telecom Finance Co. BV and guaranteed by Mobile-8 following the completion of the bond issuance. Both ratings have had their provisional status removed.

The outlook is stable.

Moody's noted that the deal was downsized to $100 million from the proposed $150 million, and that the tenor was shortened to five and a half years from the initially envisaged seven years. The change in terms was a function of the current uncertainty in the bond markets and does not adversely affect the company's financial metrics or near-term liquidity profile to any material degree, the agency said.

Moody's said it expects the company will have to downsize the capital expenditure plan in the near term in line with the reduced bond issue and that to fund any additional capital expenditure, it will need to return to the debt or equity markets.

© 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.