Standard & Poor’s (S&P) has raised its rating on Axiata to reflect the improvement in the company’s cash flow protection measures and financial metrics.
The solid performances of its core subsidiaries, particularly PT XL Axiata Tbk, in 2010 underpin the improvement.
“Axiata’s strong overall earning performance is largely attributable to XL,” said Standard & Poor’s credit analyst Allan Redimerio.
“We attribute XL’s strong performance to the initiatives taken by the company in 2009, and the stable competitive environment in Indonesia over the past 12 months.”
The performance of Axiata’s subsidiaries in Sri Lanka (Dialog Axiata PLC) and Bangladesh (Robi Axiata Ltd) continues to strengthen primarily due to improving economic conditions and favorable industry factors.
In addition, cash flows and margins remained stable at Axiata’s Malaysian subsidiary Celcom Axiata Bhd.
"Our issuer rating on Axiata is one notch above the company’s stand-alone credit profile, which we assess at ’bbb’," says S&P. -- Reuters
No comments:
Post a Comment