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Pefindo affirms the AAA rating for Indosat, this is the advice of analysts

Kamis, 04 Juni 2020 / 16:22 WIB
Pefindo affirms the AAA rating for Indosat, this is the advice of analysts
ILUSTRASI. Pefindo affirms the AAA rating for Indosat, this is the advice of analysts.

Reporter: Nur Qolbi | Editor: Hasbi Maulana

KONTAN.CO.ID - JAKARTA. PT Pemeringkat Efek Indonesia (Pefindo) affirmed idAAA's ranking with a stable outlook for PT Indosat Tbk ( ISAT ). Pefindo also affirmed idAAA and idAAA (sy) ratings for Indosat bonds and sukuk which will mature on August 3, 2020.

The intended bonds are Sustainable Bonds III Phase II of 2019 Series A with a principal value of Rp 1.11 trillion. The bonds are offered at an interest rate of 8.25% per annum.

Meanwhile, the intended sukuk is Sukuk Ijarah III Phase II 2019 Series A worth Rp 310 billion. The bonds offered under sharia principles have a fixed ijarah yield of Rp. 25,575 per year.

Also Read: IDR 8 Trillion Bonds Due This June, There Are Issuers Still Looking for Funds for Repayment

Pefindo analysts Martin Pandiangan and Niken Indriarsih stated that the AAA rating was the highest rating given by Pefindo. Both assess, Indosat's capacity to meet long-term financial commitments is relatively superior compared to other debt issuers in Indonesia.

"ISAT should be able to redeem bonds and sukuk using internal funds. As is known, ISAT has a cash equivalent of Rp 5.2 trillion as of March 31, 2020," the two analysts wrote in a press release on Tuesday (3/6).

Panin Sekuritas analyst Nico Laurens rate, ISAT liquidity is still sufficient to pay off debts due in the future. Bearing in mind, ISAT recently obtained funds from the sale of telecommunications towers.

This telecommunications operator will also pocket cash from business operations. "ISAT also still has room to apply for loans because net debt to EBITDA is down," explained Nico.

In terms of shares, ISAT is predicted to be in a positive trend thanks to its Large-Scale Social Limitation policy and work from home (WFH) which has the potential to increase demand for data traffic.

Also Read: Indosat (ISAT) has prepared a Rp 584 billion bond repayment fund due tomorrow

Nico recommends holding ISAT with a target price of Rp 2,400 per share. In the trading session I on Thursday (4/6), ISAT shares rose 2.43% to the level of Rp 2,110 per share.