Monday, August 1, 2011

PT. Indosat Tbk - Positive Rating Outlooks

Rating agency Fitch Ratings announced a revised outlook for long-term rating in local currency PT Indosat Tbk from initially stable to positive. Indosat has a long-term rating in foreign and local currencies at level BBB-.

Changes in outlook reflects the improved credit profile Indosat company last year and expectations of improved performance this year.

In the last year, Indosat recorded a revenue increase of 5.2% and earnings before interest, taxes, depreciation, and amortization (earnings before interest, taxes, depreciation, and amortization / EBITDA) of 9.7%. In addition, the EBITDA margin rose also rose by 200 basis points to 48.6%.

Fitch also have expectations this year the company will finance its capital expenditures from operating cash flow in line with declining debt burden.

The Company plans to reduce the amount of debt of U.S. $ 200 million in company debt and its interest ini.Total until the end of 2010 stood at Rp24 trillion.

Last year, Indosat has paid off debts amounting to Rp 6, 7 trillion. A total of Rp 2.7 trillion is paid to the BCA, DBS, Bank Mandiri in the form of debt and working capital loans. In addition, funds amounting to Rp 4 trillion is paid for the bond debt that matures in 2012.

Agency also provides an important record of Indosat has an important role to its parent company Qatar Telecom as revenue contributed by 29% last year. Currently, Qtel has a 65% stake in Indosat.

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