Fitch rates Etisalat bond A+

Fitch Ratings said it assigned a senior unsecured rating of A+ to Emirates Telecommunications Corp. (Etisalat), along with an expected A+ rating to Etisalat's $7 billion global medium-term notes program and the bond to be issued under the program.

Etisalat's issuer default rating also was affirmed at A+.

The outlook is stable.

The company is targeting an initial bond issue of €2.1 billion. The proceeds from the initial bond issue will be used to refinance the existing bridge loans to fund the Maroc Telecom acquisition and for general corporate purposes, Fitch said.

The notes are rated at the same level as Etisalat's issuer default rating as they will be direct, unconditional and unsecured obligations of the issuer and will rank pari passu and equally with all other unsecured obligations, the agency said.

The ratings reflect an assessment of the neutral impact on Etisalat's credit profile of the acquisition of Vivendi's 53% interest in Maroc Telecom for €3.9 billion, Fitch said.

Etisalat's issuer default rating is underpinned by its strong linkage with the government from which its rating is notched down on a top-down basis, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.