Fitch upgrades Smartfren

Fitch Ratings said it upgraded PT Smartfren Telecom Tbk.’s national long-term rating to CCC(idn) from CC(idn).

Fitch also said it upgraded Smartfren’s Rp 603 billion bond to CCC(idn) from CC(idn).

The bond, originally Rp 675 billion in size, was issued in 2007 by PT Mobile-8 Telecom Tbk.

The CCC ratings denote that default is a real possibility, Fitch said. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic conditions, the agency added.

The upgrade follows Smartfren’s gradual improvement in EBITDA generation as its subscriber base grows, Fitch said.

Smartfren expects to generate positive EBITDA in 2014 after sustaining negative EBITDA since 2008, the agency said.

But, Fitch said it believes the company’s liquidity position remains precarious, notwithstanding the improvement in EBITDA generation.

© 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.