Fitch puts Ooredoo on negative watch

Fitch Ratings said it placed Ooredoo QSC's A+ long-term issuer default rating on Rating Watch negative.

Ooredoo's instrument ratings also were placed on negative watch.

This action follows a similar recent action on Qatar's sovereign rating. Fitch also placed Qatar's AA long-term foreign- and local-currency issuer default ratings on negative watch.

Given the continued strength of Ooredoo's links with the state of Qatar, Ooredoo's ratings are two notches lower than the Qatar's, the agency said.

Fitch said it continues to apply its parent and subsidiary rating linkage methodology in rating Ooredoo.

The ratings reflect Ooredoo's strong operational and strategic ties with Qatar, the agency added.

Legal ties are underpinned by the presence of a change of control covenant in Ooredoo's financing documentation should Qatar cease to control the group, Fitch said.

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