ISAT - To spend IDR13tn, upgraded to AA+

Indosat Ooredoo Hutchison (ISAT) is planning to spend IDR13 tn in capex this year, focused on network quality improvement and expansion to ex-Java especially Nusa Tenggara, Papua and Kalimantan. Meanwhile, ISAT’s debt rating has been upgraded to to AA+ by Fitch Ratings, on grounds of improving leverage profile, performance and strengthened market share. (Source: Investor, Fitch) Comment: ISAT’s planned capex this year is higher than previous year, signifying the company’s focus to achieve growth. Furthermore, ISAT’s network integration that is slated to complete by March ‘23 is expected to be able to boost its efficiencies, therefore might help improve EBITDA margin.