Fitch rates Tower Bersama bonds A+(idn)

Fitch Ratings said it assigned a national long-term rating of A+(idn) to PT Tower Bersama Infrastructure Tbk.'s Rp 750 billion senior unsecured bonds.

The bonds will be the third issuance from Tower Bersama's Rp 7 trillion program, which was affirmed at A+(idn).

The proceeds will be used from the issuance to refinance its subsidiaries' debt, Fitch said.

The company's leverage may deteriorate further if it were to have a large debt-funded mergers and acquisitions at the current shareholder return levels, the agency said.

The company does have the ability to refinance its maturing short-term debt as demonstrated by solid access to banks and capital markets in the past, in both Indonesian rupiah and U.S. dollars, Fitch said.

However, it remains very exposed should external events or shocks close these markets, the agency said.

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