S&P and Moody`s Have Removed CreditWatch Negative
2009 - Jakarta, 29 Dec 2009

Today, Standard & Poor's Ratings Services affirmed its  'B+' corporate credit rating on PT Media Nusantara Citra Tbk. (MNC) and removed it from CreditWatch, where it was placed with negative implications on Oct. 16, 2009 as well as for the US$143 million outstanding guaranteed secured notes due September 12, 2011, in a response to the Supreme Court`s verdict which has endorsed the cassation appealed by TPI and nullified the decision of Commercial Court concerning the Bankruptcy of TPI on 14 October 2009. The outlook on the corporate credit rating is stable.

While on December 23^rd 2009, Moody's Investors Service has also confirmed PT Media Nusantara Citra's ("MNC") B1 corporate family and guaranteed secured notes ratings with stable outlook. This concludes the review for possible downgrade initiated on 16 October 2009.

"The confirmation follows MNC’s announcement that the Indonesian Supreme Court has endorsed the cassation appealed by PT Cipta Televisi Pendidikan Indonesia (“TPI”), MNC’s 75%-owned subsidiary, and nullified the decision of the Jakarta Trade Court concerning the bankruptcy of TPI on 14 October 2009,” says Wonnie Chu, a Moody’s Analyst, adding “After the Supreme Court decision, TPI will return the operation to normal.” 

The stable outlook reflects S&P and Moody`s expectations that MNC will maintain its leading market position and ample liquidity and the company will see its EBITDA margin stabilizing at around the 20% level.