Fitch rates Protelindo bonds AAA(idn)

Fitch Ratings said it assigned a AAA(idn) national long-term rating to the Rp 6.5 trillion bond program of PT Profesional Telekomunikasi Indonesia (Protelindo).

The agency also said it assigned an AAA(idn) national long-term rating to the up to Rp 1.5 trillion of bonds to be issued from the program.

The proceeds will be used for working capital purposes.

The bonds are rated at the same level as Protelindo’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, Fitch said.

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

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.

The rating also reflects Protelindo’s strong recurring cash flows and moderate net leverage, Fitch said.

These were underpinned by the company’s consistent financial policy of aiming for a ratio of net debt-to-EBITDA of less than 3x, the agency said.

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