Fitch rates Bali Tower bonds A(idn)

Fitch Ratings said it assigned a national long-term rating of BBB+(idn) to PT Bali Towerindo Sentra Tbk. (Bali Tower) and a national long-term rating of A(idn) to the company's proposed Rp 800 billion bond offering. PT Indonesia Infrastructure Finance is providing a 50% partial credit guarantee on the bonds. The outlook is stable.

Fitch said it believes the partial guarantee will improve the recovery to bondholders in the event of distress. The partially guaranteed bonds will rank pari passu with other senior secured debt at the Bali Tower level.

Bali Tower's rating reflects its changing business mix with increasing contribution from the fibre business, and declining revenue contribution from the telecommunication tower leasing business. We expect Bali Tower's FFO-adjusted net leverage to remain above 4.5x as it continues its debt-funded expansion in the medium term,” Fitch said in a press release.

Bali Tower's business profile benefits from the strength of its tower leasing business, which accounted for more than 80% of its total revenue in 2019’s third quarter.

© 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.