Fitch places Indosat on negative watch

Fitch Ratings said it placed PT Indosat Tbk.'s BBB long-term foreign- and local-currency issuer default ratings, and foreign-currency senior unsecured rating on Rating Watch negative following the announcement of its merger with mobile operator PT Hutchison 3 Indonesia (Hutch).

Fitch Ratings Indonesia has concurrently placed the AAA(idn) national long-term rating and all outstanding rupiah-denominated senior unsecured bonds and sukuk on Rating Watch negative.

“The Rating Watch reflects our view that the transaction would lead to a removal of the three-notch uplift from Indosat's pre-merger standalone credit profile of bb as the legal and strategic linkages with parent Qatar-based Ooredoo QPSC (A-/stable) diminish,” Fitch said in a news release.

Indosat will be the surviving company after the merger and will be named PT Indosat Ooredoo Hutchison Tbk.

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