PT Profesional Telekomunikasi Indonesia (“Protelindo”), the main subsidiary of PT Sarana Menara Nusantara Tbk (“SMN”, “TOWR”) recently received affirmation from Standard & Poor’s of its BBB rating with a Stable outlook. In a document entitled “Outlook Revision On Indonesia Prompts Rating Actions On Eight Companies”, Protelindo is one of two companies with investment grade ratings in Indonesia to maintain a Stable outlook.
In the document S&P “affirmed the 'BBB' issuer credit ratings on telecom tower operator PT Profesional Telekomunikasi Indonesia (Protelindo) with a stable outlook. In our view, Protelindo's stable cash flow, moderate leverage, limited debt maturities within the next two years, as well as the discretionary nature of its capital spending and dividend payments provide the company with financial flexibility to withstand a significant period of sovereign stress while still having enough liquidity to honor all its obligations in a timely manner.”
“We are pleased with outcome of the recent review by S&P. It is among our stated goals to protect our investment grade rating. This will enable us to mitigate risk and to access the best possible sources of capital for company’s shareholders. In support of this goal we plan to maintain cost discipline, to focus on a solid business model based on long term contracts to provide vital infrastructure provider to the strategic telecommunications industry”, stated Aming Santoso, SMN President Director.
SMN, owner of Protelindo, is traded under the ticker "TOWR" on the Bursa Efek Indonesia.
Copy of said S&P release can be found here.