Bakrie Telecom receives further blow as Fitch questions firm’s ability to pay its debt

24 Apr 2013

The Jakarta Post reports that struggling Indonesian CDMA operator Bakrie Telecom has had its credit rating cut to CC from CCC by Fitch Ratings, amid growing concern over the company’s ability to pay its debts. The agency considers that the telco, which is owned by the Bakrie family, will ‘likely default’ and have to restructure its USD380 million of senior unsecured bonds, which are due in May 2015. Fitch cites Bakrie Telecom’s ‘poor liquidity and uncertain earnings from operations’ as reasons for the decision.

Bakrie Telecom reported a worsening set of financial results last year, as net losses spiralled to IDR3.13 trillion (USD322 million) following a 7% year-on-year drop in revenue to IDR2.97 trillion.

Indonesia, Bakrie Telecom (BTel)