Fitch upgrades Protelindo

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

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

The outlook is stable.

The upgrade follows Protelindo’s track record of de-leveraging and gradual improvement in its cash flow generation since 2012, Fitch said.

Protelindo’s funds flow from operations-adjusted net leverage decreased to 2.2x at year-end 2014 from 4.2x at year-end 2012 due to rising EBITDA, the agency said.

Fitch said it believes that Protelindo’s current scale can support a combination of organic and inorganic growth without any material impairment to its credit profile.

The upgrade also reflects Protelindo’s commitment to maintain a consistent financial policy with net debt-to-EBITDA of about 3x to 3.5x, the agency said.

The ratings are constrained by the company’s continued significant exposure to tenants with weaker credit profiles, Fitch added.

© 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.