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