MUMBAI (Thomson Financial) - Moody's Investors Service affirmed the 'B2' corporate family rating of PT Mobile-8 Telecom Tbk, Indonesia's fourth-largest cellular operator.
At the same time, Moody's (nyse: MCO - news - people ) affirmed the 'B2' rating for the 100 mln usd senior unsecured 11.25 pct bond due 2013 issued by Mobile-8 Telecom Finance Company BV and guaranteed by Mobile-8 after the completion of the bond issuance.
The outlook on the ratings is stable.
The agency noted that the deal was downsized to 100 mln usd from the proposed 150 mln and that the tenure was shortened.
'The change in terms was a function of the current uncertainty in the bond markets and does not adversely affect the company's financial metrics or near-term liquidity profile to any material degree,' said Laura Acres, Moody's vice president.
The proceeds will be used to refinance existing loans, the purchase of network equipment and for general corporate purposes. Moody's expects that the company will have to downsize the capex plan in the near term in line with the reduced bond issue and that to fund any additional capex it will need to return to the debt or equity markets.