Bakrie Telecom Pte. Ltd's (BTPL) proposed US$130 million notes due May 2015. BTPL is a wholly-owned subsidiary of PT Bakrie Telecom Tbk and the notes are guaranteed by the latter.
The 2015 Notes are part of BTPL's US$250 million guaranteed senior notes program, to which the agency assigned a final B rating and a final RR4 Recovery Rating on May 10, 2010.
Bakrie Telecom plans to use US$130 million from this issue to re-finance US$30 million in bank loans, US$50 million to repay trade payables, and the remaining amount to fund capital expenditure as well as for general corporate purposes.
Fitch has today assigned an expected B rating and an expected RR4 recovery rating to BTPL proposed US$130 million notes.
Bakrie Telecom is the fifth-largest cellular telecom operator in Indonesia, with a 5.4% and 31% market share of overall (GSM and CDMA) and CDMA subscribers respectively at end-September 2010.
The company ratings are supported by its ability to generate robust operating cash flows, as well as by Fitch's expectations of an improvement in EBITDA margins as the areas outside of Greater Jakarta, West Java and Banten provinces are forecast to break-even at the EBITDA level in 2012.
During the nine-month period to end-September 2010 (9M10), Bakrie Telecom reported flat revenue growth, while EBITDA margins improved to 59% based on net revenues (9M09: 45%). While BTEL recorded subscriber growth of 23% yoy, this was offset by a decline in blended average revenue per minutes (ARPUs) to IDR26,000 at end-September 2010 (end-September 2009: from IDR34,000) on higher competition and lower minutes of usage.
During 9 Month 2010, Bakrie Telecom also launched its Broadband wireless access (BWA) services under the 'AHA' brand, which can deliver broadband at a speed of up to 3.1mbps to Indonesian subscribers.
Fitch also notes that Bakrie Telecom ratings reflect a one-notch downgrade on its standalone ratings, based on concerns over the weak financial and liquidity position of PT Bakrie & Brother Tbk (BNBR), which has a 45.58% direct and indirect interest in BTEL (based on BNBR's financial statement as of 30 September 2010).
No comments:
Post a Comment