Moody's reviews Qtel

Moody's Investors Service said it placed the A1 long-term ratings for Qatar Telecom QSC, the A1 rating for Qtel International Finance Ltd. and A1-rated bonds issued under Qtel's medium-term note program under review for downgrade.

This follows the change in outlook to negative from stable of the Ba1 corporate family rating for PT Indosat Tbk. Qtel owns 65% of Indosat.

"Following the change in outlook for Indosat in light of a weaker financial profile and Moody's expectation of increasingly limited headroom under Indosat's financial covenants Moody's is reviewing the impact this may have on Qtel given the existence of cross default clauses linking into Qtel," Martin Kohlhase, a Moody's assistant vice president, said in a statement.

Indosat's covenants limit debt to EBITDA to 3.5 times maximum, which Moody's said it estimates at 2.9 times on Dec. 31.

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