TLKM - Fitch affirms BBB ratings

TLKM - Fitch affirms BBB ratings Fitch Ratings has affirmed a rating of Telekomunikasi Indonesia (TLKM) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) as well as its foreign-currency senior unsecured rating at 'BBB'. Meanwhile, TLKM's standalone credit profie (SCP) is maintained at 'a-'. (Source : Emiten News) Comment : TLKM's investment grade credit ratings are testament to its strong leadership in telecommunication industry, especially on mobile and fixed broadband in which the company controls over 50% market share. In addition, TLKM's balance sheet is the strongest among the four providers, allowing it to capture expansion opportunities with minimal burden from finance costs and leverage, despite slowing revenue growth. In overall we still maintain our BUY call on TLKM with target price of IDR4,420, implying 5.6x '23F EV/EBITDA, while currently is trading at 4.6x forward EV/EBITDA rather undemanding at below -1SD 5-year mean.