(TIS) - The following is a statement from Moody's Investors Service.

Hong Kong, August 05, 2013 -- Moody's Investors Service says that the operating results of PT Bhakti Investama Tbk (BHIT) for 1H 2013 were broadly in line with expectations, and continue to support its B1 corporate family rating and B2 bond rating with stable outlook.

"BHIT's revenue for 1H 2013 grew 22% year-on-year and its unadjusted EBITDA increased 24%, owing to the strong performance of its core media subsidiaries, which contributed around 85% of its consolidated revenue,"
says Annalisa Di Chiara, a Moody's Vice President and Senior Analyst.

Through its 51.55% stake in Global Mediacom (unrated), BHIT has a significant stake in media operating companies PT Media Nusantara Citra Tbk (MNC, Ba3 stable), Indonesian's leading free-to-air (FTA) broadcast company, and PT MNC Sky Vision Tbk (MNC Sky Vision, B2 positive), a Pay TV operator.

During 1H 2013, MNC continued to expand its market share and maintained its leading position in Indonesia's growing FTA TV market, with a prime time local audience share of about 43%, compared with 35% at end-2012. MNC's unadjusted EBITDA margin also improved to 41% for 1H 2013 from 34% in 1H 2012, mainly because of lower programming costs.

MNC Sky Vision also reported strong operating results for 1H 2013 with subscriber growth of 43% year-on-year, reflecting its solid organic growth and the underpenetrated Pay TV market in Indonesia. Moody's expects that MNC Sky Vision's leading market share and product offerings will continue to support significant organic growth over the next 12-18 months, and help keep EBITDA margins above 40%.

BHIT's other two segments, financial services and energy and natural resources subsidiaries, contributed around 7% and 5% of consolidated revenue, respectively.

On the other hand, BHIT's credit quality remains pressured by the lack of clarity over its shareholders' intentions and the ambitious growth plans for its non-media-related businesses -- such as financial services, energy and natural resources, and property -- which have weaker credit profiles than its media businesses.

Expanding these businesses will require additional investments, including for acquisitions, to reach the scale and market position that BHIT is targeting, a situation that could present event and execution risks.

For example, in May 2013, BHIT completed the issuance of bonds worth $365 million and used IDR 1.949 trillion ($190 million) of the proceeds to purchase a 26.21% stake in PT MNC Land Tbk, a real-estate and property management company listed in Indonesia.

Even though the company's consolidated financials generate robust credit metrics for the group and support the rating, BHIT's ability to service its debt depends on the cash dividends up-streamed by its subsidiaries because it is a holding company. Therefore, Moody's analyzes BHIT as a standalone holding company.

The stable rating outlook reflects Moody's expectation that Global Mediacom will continue to provide a stable level of cash dividends and that BHIT's coverage of interest by cash dividends will remain above 1.5x, a level appropriate for B1 rating level.

The principal methodology used in these ratings was the Global Investment Holding Companies Methodology published in October 2007. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Headquartered in Jakarta, BHIT is a listed investment holding company with strategic investments in operating companies in the media, financial services, and energy and resources industries.

In addition to MNC and MNC Sky Vision, BHIT's other principal operating companies are PT MNC Kapital (Kapital, unrated) and PT MNC Energi (unrated). The company also has portfolio investments in other private and public companies operating in transport, infrastructure and other industries. BHIT is controlled by Mr. Hary Tanoesoedibjo.