S&P lowers MNC Investama

Standard & Poor’s said it lowered the long-term corporate credit rating on PT MNC Investama Tbk. to B+ from BB-.

The agency also said it lowered the long-term Asean regional scale rating to axBB- from axBB+, along with the long-term issue rating on Ottawa Holdings Pte. Ltd.’s $365 million senior secured notes to B+ from BB-. MNC Investama guarantees the notes.

The outlook is negative.

The downgrade reflects an expectation that MNC Investama’s consolidated leverage will remain higher than anticipated through 2016, S&P said.

The company’s debt, which is largely in U.S. dollars, has increased beyond expectations, especially at its main media and pay-TV operating companies, the agency said.

The debt increase coincided with depreciation in the Indonesian rupiah, a tougher operating environment and weaker growth in revenue and cash flow, S&P said.

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