Moody's: No impact on China Mobile

Moody's Investors Services said that the recent restructuring exercise for China's telecommunications industry should have no immediate impact on the A1 local-currency issuer rating for China Mobile Ltd. - whose parent company China Mobile Communications Corp. - is participating in the industry restructuring exercise.

The restructuring will create a more level playing field with three carriers able to compete across fixed-line and cellular platforms, Moody's said.

To this end, the company has announced its acquisition of fixed-line operator China TieTong Telecommunications Corp., which has merged into another one of China Mobile's subsidiaries.

Given the low level of fixed-line penetration in China and China Tie Tong's small size this is not expected to have a material impact on China Mobile's financial profile.

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