Moody's may cut Mobilink

Moody's Investors Service said it placed its B2 corporate family and Caa1 senior unsecured bond ratings for Pakistan Mobilink Communications Ltd. (Mobilink) under review for possible downgrade.

The review has been prompted by a similar action for parent Orascom Telecom Holdings SAE due to concerns about the operating performance of Orascom Telecom's Algerian subsidiary and the ability to repatriate cash from that country, as well as ongoing liquidity pressures at the holding company level, Moody's said.

The review also reflects the close linkage between Orascom and Mobilink, in light of Orascom's 100% ownership and Mobilink's historical track record of relying on Orascom's support for covenant compliance, the agency said.

Mobilink should be able to comply with amended bank covenants at least for the next 12 months, Moody's said. Beyond this date, the agency said it anticipates that covenant headroom could erode and further support from Orascom may be required.

© 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.