Moody's: Telekomunikasi unchanged

Moody's Investors Service said that PT Telekomunikasi Indonesia Tbk's news of its interest in PT Bakrie Telecom Tbk as a potential partner for its Flexi CDMA cellular business has no immediate impact on the company's Baa2 rating.

The outlook remains stable.

In response to a query from the Indonesian Stock Exchange, the company affirmed its interest in pursuing a transaction with Bakrie Telecom, but said it has yet to make any official or final decision on the matter, Moody's said.

Moody's acknowledged the potential benefits of consolidation within Indonesia's overpopulated and highly competitive CDMA market, but also noted the potential credit implications of consolidation are subject to the terms and conditions of individual transactions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.