Fitch: Solusi Tunas notes BB-

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of BB- to PT Solusi Tunas Pratama Tbk., along with a senior unsecured rating of BB-.

The agency also said it assigned a national long-term rating of A+(idn).

The outlook is stable.

Fitch also said it assigned an expected rating of BB- to the company’s wholly owned subsidiary, Pratama Agung Pte. Ltd.’s proposed dollar-denominated senior unsecured notes due 2020.

The notes will be unconditionally and irrevocably guaranteed by Solusi Tunas Pratama and are rated at the same level as its foreign-currency senior unsecured rating, the agency said.

The proceeds will be used to partially refinance its six-month $790 million bridge loan facility that was used to finance the acquisition of 3,500 towers from PT XL Axiata Tbk for Rp 5.6 trillion, Fitch said.

The company’s A national ratings denote expectations of low default risk relative to other issuers or obligations in the same country, the agency said.

The ratings also consider the company’s high leverage, early stage in the growth cycle and weak organic growth capabilities, Fitch said.

The ratings also consider management’s commitment to de-leverage and an expectation that Solusi Tunas Pratama will manage its FFO-adjusted net leverage to less than 5x during 2015 to 2016, the agency said.

© 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.