JAKARTA. PT Fitch Ratings Indonesia, a credit rating agency headquartered in the United States, has affirmed the long-term national rating of PT XL Axiata Tbk (EXCL) at “AAA(idn)” with a stable outlook.
The “AAA” rating is the highest rating given by Fitch on the national rating scale in Indonesia. "This rating is given to issuers or debt securities with the lowest expected default risk relative to other issuers or debt securities in Indonesia," said Ana Halim, Principal Analyst of Fitch Ratings Indonesia.
The rating also applies to a number of debt securities issued by EXCL, according to Ranty Astari Rachman, Corporate Secretary of EXCL. Some of them are XL Axiata Shelf-Registered Bonds I - IV, and XL Axiata's Shelf-Registered Sukuk Ijarah II - Phases I - II.
The EXCL rating is based on the strong support from the parent company, namely Axiata Group Berhad, which is based in Malaysia. Fitch said EXCL is still the largest EBITDA contributor for Axiata, with a percentage of 25% in the 2020 financial year.
In addition, Fitch believes that the consolidation of the cellular sector in Indonesia will support business stability and long-term growth. "We now estimate low single-digit growth for XL's revenue in 2021-2024, driven by gaining market share outside Java," said Halim. (KR/LM)