Fitch upgrades Protelindo

Fitch Ratings said it upgraded PT Profesional Telekomunikasi Indonesia’s (Protelindo) long-term foreign-currency issuer default rating to BBB- from BB+.

The agency also said it upgraded Protelindo’s national long-term rating, national senior unsecured rating and the rating on its Rp 1 trillion senior unsecured bond to AAA(idn) from AA+(idn).

The outlook is stable.

The AAA national ratings denote the highest rating assigned by Fitch on its national rating scale for that country, the agency explained.

This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country, Fitch said.

The upgrades reflect the strong recurring cash flows and moderate net leverage of Protelindo, the agency said.

These were underpinned by its consistent financial policy of aiming for net debt-to-EBITDA of less than 3x, Fitch said.

The agency said it believes the company’s current scale and financial strength can comfortably support organic and inorganic growth, along with progressive dividends, without a material impairment to its credit profile.

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