Moody’s puts MNC Sky on downgrade review

Moody’s Investors Service said it placed the B1 corporate family rating of PT MNC Sky Vision under review for downgrade.

The company is 69.46% owned by PT Global Mediacom Tbk., which is owned by PT MNC Investama Tbk.

The review primarily reflects the increasing level of refinancing risk associated with MNC Sky’s $243 million bank loan due in November 2016 and the rise in leverage due to its significant foreign-currency exposure against backdrop of the rupiah’s weakness against the U.S. dollar and its weakening operating performance, Moody’s said.

Because all of MNC Sky’s debt is denominated in U.S. dollars, its interest costs and leverage have both risen as a result of the rupiah’s depreciation, the agency said.

MNC Sky’s fundamental operating performance also has weakened due to softness in Indonesia’s economic growth, coupled with intensifying competition in the pay-TV market, Moody’s said.

© 2015 Prospect News.
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