Moody’s: MNC Investama view to negative

Moody's Investors Service said it confirmed the Caa1 corporate family rating of MNC Investama Tbk. (BHIT) and the Caa2 senior secured rating of the bonds issued by its wholly owned subsidiary Ottawa Holdings Pte. Ltd. and which are unconditionally and irrevocably guaranteed by MNC Investama.

The outlook was revised to negative. This concludes the review for downgrade that began on Sept. 5.

Through its 52.84% stake in PT Global Mediacom Tbk., MNC Investama has stakes in media operating companies PT Media Nusantara Citra Tbk. and PT MNC Sky Vision Tbk. The company also has a significant interest in PT MNC Kapital Indonesia Tbk.

"The rating action reflects the announcement on 11 November from Sky Vision that it has signed a new syndicated loan facility to refinance the balance of the company's existing three-year loan maturing in mid-December," Moody's vice president and senior credit officer Annalisa Di Chiara said in a news release.

Sky Vision announced that it previously paid 25% of the company's existing $243 million loan and signed a new three-year loan for $170 million loan facility agreement with an option to increase the limit to $190 million. Proceeds from the new loan will be used to refinance the $182.2 million balance remaining on the existing loan which falls due in December.

"This announcement is positive, as it addresses the imminent refinancing risk present at Sky Vision. Still, upcoming debt maturities throughout the BHIT group are substantial over the next 18 months and weigh on the company's ratings," DiChiara added in the release.

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