Fitch affirms Jordan Mobile

Fitch Ratings said it affirmed Jordan-based Jordan Mobile Telephone Services' local currency issuer default rating at BBB- and the foreign currency issuer default rating, which is capped by the country ceiling, at BB.

The outlooks remain stable.

Fitch said the ratings reflects the company's sound credit profile, driven by the economy in the Hashemite Kingdom of Jordan and its leading position (61% local market share for the first half 2006) under its well-known Fastlink brand, despite intensifying competition.

Leverage is low for its rating level, demonstrated by lease and vendor financing adjusted net cash of 0.6x (net cash to EBITDA on an annualized basis). This is an improvement on the net debt position at fiscal year 2003, as a result of stronger EBITDA and operating cash flow.

Fitch said it expects the company will continue to channel upstream dividend payments to the parent company MTC Telecom in Kuwait in the region of 70% of the company's net income as in 2006. In Fitch's view, ratings are not constrained by MTC Telecom's credit profile nor do they assume material support from the parent in times of financial difficulty.

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