Mubasher: Moody's Investors Service on Thursday confirmed the “A2” long-term rating with a “Stable” outlook for the Qatari telecom company Ooredoo.
The agency also affirmed the “A2” senior unsecured ratings on Ooredoo International Finance Limited (OIF), a wholly owned finance vehicle, and Ooredoo Tamweel Limited.
"The affirmation of the ‘A2’ ratings with a ‘Stable’ outlook reflects Ooredoo's robust standalone credit profile with around 70% of EBITDA generated outside of Qatar in 2016, as well as the company's cash balances which are sufficient to meet debt obligations at the parent and group level for two years," Senior Analyst at Moody's Douglas Rowlings said.
On 4 July, Moody's had changed Qatar's sovereign rating outlook to “Negative”, and affirmed its “Aa3” rating.
Downgrading the outlook was attributed to the financial risks arising from the rift between Qatar and a number of Arab and GCC states, according to a report issued by Moody’s.
Ooredoo reported a 33.5% year-on-year decrease in its profits in the first quarter of 2017, according to a bourse statement.
Net profits amounted to QAR 584.11 million ($159 million) in Q1-17, compared to QAR 878.64 million ($239.17 million) in Q1-16.
