Moody’s changes Pakistan Mobile view

Moody's Investors Service said it revised to negative from stable its outlook on Pakistan Mobile Communications Ltd. (Jazz).

At the same time, the agency affirmed the company's B1 corporate family rating.

"Despite Jazz's strong fundamental credit quality, the company's B1 corporate family rating is constrained to no more than two notches above the sovereign's B3 rating," Annalisa DiChiara, Moody's vice president and senior credit officer, said in a news release.

"As a result, we have changed Jazz's outlook to negative, in line with that of Pakistan's sovereign rating, despite the company's solid business fundamentals."

Moody’s said that because the company is predominantly a domestic entity, with substantially all of its revenues derived from and assets based in Pakistan, the agency believes that the company's fundamental creditworthiness needs to closely reflect the potential risks that it shares with the sovereign.

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