JAKARTA: PT Fitch Ratings Indonesia assigns expected B rating to PT Bakrie Telecom Tbk US dollar-denominated notes amounting US$130 million.As stated in a press release today, the rating is given following the company's plan to issue notes due in May 2015. The notes will be issued through Bakrie Groups telecommunication unit, Bakrie Telecom Pte Ltd, with full guarantee from the parent company.The notes issuance is included in the US$250-million debt issuance program of Bakrie Telecom Pte Ltd launched in May last year, Nitin Soni, lead analyst of Fitch, said in the release.Nitin explained that the fund from the issued notes will be used to settle bank loan as much as US$30 million, operating account payables as much as US$50 million, while the rest will be used to finance capital expenditure and other needs.Bakrie Telecom is Indonesias fifth largest mobile-phone operator, with market share for GSM (Global System for Mobile Communications) reaching 5.4% and CDMA (Code Division Multiple Accessse) 31% in the end of September 2010.The BTEL-coded companys rating is supported by the company's ability to improve operational cash flow, in line with Fitch's expectation for its EBITDA margin.According to Nitin, the projected growth in EBITDA margin is boosted by business expansion outside Jakarta, West Java, and Banten, which may help the companys EBITDA to score break-even point by 2012. (T04/NOM)
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