Moody's assigns ratings to Indosat

Moody's assigns ratings to Indosat

JAKARTA: Hong Kong-based Moody's Investors Service has
assigned a provisional foreign currency issuer rating of (P)B2 to
PT Indonesian Satellite Corporation Tbk (Indosat) and foreign
currency long-term debt rating of (P)B2 to the proposed US$200
million 144A and Reg S issue of Indosat Finance Company B.V., a
wholly-owned subsidiary of Indosat.

"This is the first time that Moody's has assigned ratings to
Indosat. The outlook for the ratings is stable," Moody's said in
a statement.

The (P)B2 debt rating is based on the unconditional and
irrevocable guarantee to be provided to the securities by
Indosat, PT Satelit Palapa Indonesia (Satelindo) and PT Indosat
Multimedia Mobile (IM3) on a joint- and several-basis.

The securities will be sold in a privately negotiated
transaction without registration under the Securities Act of 1933
under circumstances reasonably designed to preclude a
distribution thereof in violation of the Act. The issuance will
be designed to permit resale under Rule 144A.

The provisional B2 rating is based on Moody's review of
documentation as of Oct. 16, 2003.

Moody's expects a B2 definitive rating to be assigned upon
review of the final documentation and a successful drawdown of
the dollar bonds, rupiah bonds and rupiah bank loans. -- JP