Fitch rates Tower Bersama bonds AA-(idn)

Fitch Ratings said it assigned a national long-term rating of PT Tower Bersama Infrastructure Tbk.’s Rp 5 trillion bond program.

The agency also said it assigned a national long-term rating of AA-(idn) to the company’s Rp 1 trillion of bonds to be issued from the program.

The proceeds will be used to repay the company’s existing dollar-denominated debt, Fitch said.

The bonds were rated at the same level as Tower Bersama’s national long-term rating despite its structural subordination of debt held at the operating subsidiaries, which generate all of the group's revenue, the agency said.

The company is expected to gradually replace its debt at its operating companies with debt at the holding company, Fitch added.

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