Moody’s cuts Tower Bersama, notes to Ba3

Moody's Investors Service said it downgraded Tower Bersama Infrastructure Tbk.'s corporate family rating to Ba3 from Ba2.

At the same time, the agency downgraded the rating on the $300 million senior unsecured notes issued by TBG Global Pte. Ltd. – a wholly owned subsidiary of Tower Bersama – to Ba3 from Ba2. The notes are unconditionally and irrevocably guaranteed by Tower Bersama.

The outlook is stable.

Tower Bersama leverage, which surged to 6.3 times following its debt-funded acquisition of 2,500 towers from Indosat in 2012, has persistently remained above Moody’s tolerance for the rating since that time.

Furthermore, on Nov. 23, the company announced its shareholder returns policy, which guided to dividends and/or share buybacks of Rp. 1 trillion in 2016. This amount is expected to increase every year.

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