Friday, 29 June 2012

‘Qtel’s planned buyout of Wataniya credit-negative’

Moody’s Investors Service says that the proposed minority buyout by Qatar Telecom Q.S.C. (“Qtel”; rated A2/stable) of shares in Wataniya (not rated) is credit-negative as it will reduce Qtel’s liquidity headroom given that this is the second significant minority buyout that it has announced within a month. Moody’s explains that Qtel’s A2 rating and stable outlook remain unchanged, and believes the company can absorb the initial negative cash impact pro-forma the combined effects of material upcoming and closed transactions.

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