Moody’s assigns credit positive to Gulf telecom operators | GulfNews.com

Moody’s assigns credit positive to Gulf telecom operators | GulfNews.com:



"Moody’s has given a credit positive to Gulf telecom operators who have signed deals to share their mobile networks.



On March 18, Etisalat (Aa3 stable) signed a memorandum of understanding with six other mobile telephony companies active in the Middle East and Africa – among them Ooredoo (A2 stable) and Saudi Telecom Company (STC, A1 stable).



“The pact is credit positive because the telecom operators within Gulf Cooperation Council (GCC) countries – Etisalat, Ooredoo and STC – will benefit from lower operating costs and more efficient uses of capital owing to the infrastructure-sharing agreement. Reduced costs will help operating profitability, which has been declining for a number of years,” Martin Kohlhase, vice-president – Senior Analyst at Moody’s, said in the Moody’s Credit Outlook, a biweekly newsletter."



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