Fitch may up Orascom Tunisie

Fitch Ratings said it placed Orascom Telecom Tunisie's BBB- long-term foreign- and local-currency issuer default ratings and national long-term rating of A+ (tun) on Rating Watch positive.

The actions follow news that Qatar Telecom has signed a share purchase agreement with Orascom to acquire, together with a local consortium, a 50% stake in Orascom for $1.2 billion.

Prior to this announcement, Orascom's ratings were based on the standalone performance and financial profile of its Tunisian-branded mobile business, Fitch said.

The positive watch reflects an opinion that after the acquisition is closed, Orascom's ratings will benefit from some linkage uplift with its new higher rated parent, the agency said.

The ratings also consider Orascom's robust free cash flow generation and strong credit metrics compared with its peers, Fitch added.

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