Moody’s revises Ooredoo to negative

Moody's Investors Service said it changed the outlook on the A2 long-term issuer rating of Ooredoo QSC (formerly Qatar Telecom QSC); the A2 ratings of Ooredoo's wholly owned finance vehicle, Ooredoo International Finance Ltd.; and the A2 ratings of Ooredoo Tamweel Ltd. to negative from stable.

Concurrently, the agency affirmed all ratings.

"Profitability in Ooredoo's core markets has been declining at a faster pace than initially expected. This results in weak credit metrics and a weakly positioned baseline credit assessment that we have now reflected in the negative outlook," Moody’s vice president and senior credit officer Martin Kohlhase said in a news release.

"Profitability from key markets Indonesia, Iraq, Tunisia and Kuwait, which account for more than half of the group's revenues, has become increasingly under pressure, limiting prospects for a turn-around in 2015," Kohlhase added.

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