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T Bakrie Telecom’s (BTEL) financial fortunes are floundering after its recent rights issue failed to attract sufficient interest and the firm’s credit rating took another dive.

BTEL vice president director Justiro Abi told The Jakarta Post on Wednesday that the company had yet to raise the money it needed repay Rp 650 billion (US$68.9 million) in loans maturing in September.

The company said in April that it intended to raise Rp 754 billion from a non-preemptive rights issuance and a $50 million loan.

However, by mid-June, the company had raised only Rp 150 billion from affiliated investment company Bakrie Global.

“We haven’t received additional funds from the non preemptive rights issue yet,” Justiro said.

BTEL was currently attempting to secure loans from Credit Suisse to repay the maturing debt, he added. “We are targeting to reach a deal this month.”

The firm’s poor progress led Fitch Rating to place its $380 million senior unsecured bond on a negative rating watch (NWR), with a recovery rating of RR4.

“The NWR reflects the heightened liquidity risk associated with the repayment of its Rp 650 billion bond, due Sept. 4, 2012, and ongoing finance lease obligations,” Fitch said.

The negative rating followed a similar downgrading of the company’s long-term foreign and local currency issuance default ratings from “B” to “CCC” in March.

Fitch said that BTEL’s financial poor performance would make it difficult to obtain loans. BTEL’s liquid assets comprised only Rp 215 billion at the end of the first quarter.

The ratings firm also said that BTEL failed to show that its decision to purchase a 35 percent stake in CDMA service provider PT Sampoerna Telekomunikasi Indonesia (STI) would improve its market
position.

“Its strategic tie-up in March 2012 is unlikely to materially improve BTEL’s financial strength or competitive position,” Fitch said.

BTEL and STI agreed in March to merge businesses amid the competitive local market, with BTEL taking a 35 percent stake in STI, which would in return receive a 2.3 percent stake in BTEL from its non preemptive rights issue.

BTEL president director Anindya Bakrie recently said that BTEL’s Esia products would be favored over STI’s Ceria brand after the merger.

“Esia will be promoted more because it has wider brand network. Releasing a new brand is unlikely because it is costly,” Anindya said.

Shares in BTEL closed at Rp 179 apiece on Wednesday, a 2.18 percent drop from Rp 183 a day earlier.