S&P rates Etisalat loan, note program AA-

Standard & Poor's said it assigned an AA- rating to the $7 billion global medium-term note program and €1.05 billion term loan issued by Emirates Telecommunications Corp. (Etisalat).

The agency also said it placed the ratings on CreditWatch with negative implications, pending resolution of the CreditWatch on Etisalat.

S&P said it expects to resolve the placement in the next few weeks.

The ratings reflect an assumption that the two instruments will rank pari passu with each other and other senior unsecured debt, the agency said.

The ratio of Etisalat's priority liabilities, primarily including debt at the subsidiary level, is significantly below 20%, which supports the ratings, S&P said.

The ratings also consider the company's strong business risk profile and minimal financial risk profile, the agency said.

The company has a strong position in the United Arab Emirates telecoms market, high profitability and cash flow generation, S&P said, and track record of ongoing support from the government.

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