Moody’s: MNC Investama n downgrade review

Moody’s Investors Service said it placed under review for downgrade the B1 corporate family rating on PT MNC Investama Tbk.

The agency also placed on downgrade review the B2 bond rating on the dollar-denominated senior secured notes issued by Ottawa Holdings Pte. Ltd., a wholly owned subsidiary of MNC Investama. MNC Investama guarantees the notes.

The review follows the deterioration in the company’s financial profile, both at the consolidated level and the standalone holding company level, Moody’s said.

Consolidated leverage, as measured by adjusted debt-to-EBITDA, has risen beyond expectations to 3.5x, the agency said, and will likely remain elevated at more than 3.5x to 4.0x into 2016 as the group continues with its aggressive expansion plans.

The company’s growth plans for non-media-related activities, like financial services, continue to weigh on the ratings as these businesses have weaker credit profiles than the group’s established media businesses, Moody’s said.

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