Moody’s assigns Baa2 to Axiata ntoes

Moody's Investors Service said it assigned a provisional Baa2 rating to the proposed sukuk notes to be issued under the $1.5 billion multi-currency sukuk issuance program established by Axiata SPV2 Bhd., a wholly owned subsidiary of Axiata Group Bhd. (Baa2 stable).

The outlook is stable.

The proposed notes will represent the third drawdown under the program, which is rated provisional Baa2 and is in line with Axiata's long-term issuer rating.

Moody's said it considers the sukuk to be a senior unsecured obligation of Axiata. As such, the rating reflects (a) the ultimate obligation of Axiata to ensure that the periodic distribution amount is always maintained; and (b) the existence of a purchase undertaking, which implies that the sukuk holders ultimately rely on the creditworthiness of Axiata for repayment when the trust is dissolved.

"Moody's rating of the proposed sukuk notes is equivalent to Axiata's senior unsecured issuer rating, as the notes are viewed as being commensurate with a senior unsecured payment obligation, with sukuk holders ultimately relying on Axiata for return and principal repayment," Moody's vice president and senior credit officer Annalisa Di Chiara said in a news release.

© 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.