Fitch Ratings has assigned Indonesian towerco Protelindo’s proposed Rp1trn (US$82.3m) bond issue an AA- rating, based on the company’s “solid” business model.
Protelindo plans to use proceeds from the sale to clear its rupiah-denominated bank…
Fitch Ratings has assigned Indonesian towerco Protelindo’s proposed Rp1trn (US$82.3m) bond issue an AA- rating, based on the company’s “solid” business model.
Protelindo plans to use proceeds from the sale to clear its rupiah-denominated bank loans, according to a Fitch statement.
The agency said that the towerco had a strong EBITDA margin of 82.6% in 3Q13, as well as strong access to funding from both local and foreign banks.
Fitch continued saying that although Protelindo’s financial leverage is “manageable”, it is unlikely to drop significantly as it is set to continue acquiring towers as part of its growth strategy.
It added that Protelindo’s exposure to unprofitable Indonesian telco tenants, such as Bakrie Telecom and Smartfren Telecom, which altogether accounted for 15% of Protelindo’s revenue at 3Q13, is a rating risk.
