||Asean Affairs 9 July 2013
Indonesia's Tower Bersama gets AA-(idn) rating from Fitch
Indonesia:Ratings agency Fitch Ratings has assigned PT Tower Bersama Infrastructure Tbk (TBI) a national long-term rating of AA-(idn) with stable outlook.
The drivers for the rating included the company’s solid credit profile, strong profitability, and its minimum liquidity risks.
“TBI's credit strengths are its ability to generate predictable cash flows, strong counterparty tenant mix and a high operating EBITDAR margin,” Fitch said in an official release
“The rating is also supported by high barriers to entry as the Indonesian telco regulator prohibits non-Indonesians from holding majority stakes in tower companies.”
Fitch added future developments that could individually or collectively lead to negative rating actions included debt-funded acquisition of another tower portfolio or lease defaults by weaker telcos and a fall in revenue contribution from investment-grade telcos to below 50 percent.
“A positive rating action is not expected in the medium term as the company is unlikely to deleverage significantly as it invests to maintain growth,” Fitch said.