Moody’s Investors Service upgraded its outlook for Indosat Ooredoo, with acceleration in its 4G investments apparently offsetting concerns about intense competition in Indonesia.
It upped its rating from negative to stable on an expectation Indosat Ooredoo will maintain its market position while keeping its financial metrics broadly solid over the next 12 months to 18 months, analyst Stephanie Cheong stated.
Cheong noted a sale of non-core tower assets in 2019 sustained its ability to fund an ongoing large capex programme. Moody’s expects Indosat to maintain high capex intensity of 42 per cent to 46 per cent of revenue as it expands the reach and quality of its 4G networks outside of Java.
Moody’s forecast the operator’s revenue to grow by around 5 per cent over the next 18 months despite rising competition and weak economic conditions: in the opening nine months of 2020 it registered 9.2 per cent growth versus the comparable 2019 period, but its net loss was significantly higher.Subscribe to our daily newsletter Back