Fitch assigns TBG Global notes BB

Fitch Ratings said it assigned TBG Global Pte. Ltd.'s proposed dollar-denominated notes, which are guaranteed by PT Tower Bersama Infrastructure Tbk. (TBI; BB/Stable), but not by TBI's operating subsidiaries (opcos), an expected rating of BB(EXP).

TBG Global is a finance subsidiary of TBI, an Indonesia-based telecommunications tower operator.

Fitch said it rates the proposed notes at the same level as TBI's issuer default rating despite their structural subordination to debt at the opcos, which generate all of the group's revenue.

The agency did not notch down the proposed notes because it believes that there will be a strong creditor recovery in a distress scenario as a high proportion of the group's operating cash flows are contractually locked in ($2.2 billion at end-September 2014).

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