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JAKARTA Fitch Ratings affirmed the ratings of PT XL Axiata Tbk. (EXCL) on long-term global debt securities and debt securities of dollars at the BBB level.
“Simultaneously, Fitch Ratings Indonesia confirms the long-term national rating at the level XL AAA (idn) with outlook stable, "said Director of the International Fitch Ratings Nitin Soni in an official statement on Friday (01/23/2015).
He explained, the AAA national rating indicates the highest rating given by Fitch Ratings on a national scale ratings for Indonesia.
This ranking is pinned to the issuer or issuers of debt with the lowest relative risk prediction over failure to pay debts as compared to other issuers or state bonds.
BBB rating for XL is closely related to the parent company’s credit strength of 66.5% EXCL the Axiata Group Berhad. Fitch rating for XL top-down manner in accordance with the criteria of the parent and subsidiary considering their financial and strategic importance to the parent.
“XL is a subsidiary of Axiata who had the fastest growth with a 35% and 34% of the revenue and EBITDA for the nine months ended September 30, 2014,” he explained.
He believes, Axiata has kemamuan and ability to support the needs of XL, given the size of the company and the brand is owned by XL. Axiata indeed provide real support for one of them to provide a loan of US $ 500 million to XL to partly finance the acquisition of PT Axis Telecom worth Rp10 trillion.