JAKARTA (IndoTelko) – Moody's Investors Service has affirmed the Ba2 corporate family rating (CFR) of Tower Bersama Infrastructure Tbk (TBIG).
Moody's has also affirmed the Ba3 ratings of the $300 million senior unsecured notes of TBG Global Pte Ltd, a wholly-owned subsidiary of Tower Bersama. The notes are unconditionally and irrevocably guaranteed by TBI.The ratings outlook remain negative.
The rating action follows TBIG announced share exchange transaction with PT Telekomunikasi Indonesia Tbk (Telkom, Baa1 stable), under which TBIG will obtain management control of Telkom's wholly-owned telecommunications tower subsidiary, PT Dayamitra Telekomunikasi (Mitratel, unrated) in exchange for an equity interest of up to 13.7% in TBIG.
Mitratel owns and operates 3,928 towers across Java and Bali, serving 4,363 tenants, which generated revenue of IDR1.5 trillion in 2013.
"Despite the additional debt, the deal is credit positive for TBIG as it is immediately EBITDA accretive and will help TBIG deleverage, given the low gearing at Mitratel," says Nidhi Dhruv, a Moody's Assistant Vice President and Analyst.(es)