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