Fitch rates Bakrie Telecom notes B

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of B to PT Bakrie Telecom Tbk, along with an expected rating of B and an expected recovery rating of RR4 to the proposed $250 million notes due 2015 to be issued by Bakrie Telecom Pte. Ltd., and guaranteed by Bakrie Telecom. The ratings are contingent upon receipt of final documents.

The outlook is stable.

The ratings reflect the company's position as the fifth-largest cellular telecom operator in Indonesia, Fitch said.

The ratings also consider its inability to generate sustainable free cash flow despite strong growth in cash flow from operations, the agency said.

The ratings are supported by reasonable growth prospects for the Indonesian cellular market, Fitch added.

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