Fitch raises Telkomsel rating

Fitch raises Telkomsel rating

JAKARTA: PT Telekomunikasi Selular, Indonesia's biggest mobile phone services operator, had its credit rating outlook raised to positive from stable today by Fitch Ratings, which cited its dominant position in the country's expanding mobile market.

Fitch affirmed its long-term foreign currency rating for the company, known as Telkomsel, at B+, four levels below investment grade and the same as Indonesia's sovereign rating.

"Telkomsel's ratings take into account its leading position (and largest network coverage) in the high-growth Indonesian mobile market," a Fitch statement said. "The improving operating environment in Indonesia and robust demand for mobile services has underpinned Telkomsel's consistent and impressive financial performance over the past several years."

Telkomsel reported a 31 percent increase in net income in the first nine months of this year as its subscriber base rose 56 percent. It had 13.7 million subscribers as of Sept. 30. It earned Rp 3.99 trillion (US$443 million) in the nine months ending on Sept. 30, from Rp 3.06 trillion a year earlier. -- Bloomberg