S&P: Telemobil on watch

Standard & Poor's said it placed its B- long-term corporate credit rating on Telemobil SA on CreditWatch with negative implications, following news that the group is postponing its $125 million senior secured notes offering due to weak market conditions.

At the same time, S&P said it withdrew its B- senior secured debt rating on the postponed notes due 2014.

The group decided to postpone its $125 million secured notes until market conditions improve, which makes a second attempt at issuance unlikely before the end of the summer, S&P said.

The agency added that the ratings continue to reflect Telemobil's vulnerable competitive positions, weak liquidity and high leverage while they are supported by the past and ongoing financial assistance afforded to Telemobil by its shareholders, the Saudi conglomerate Saudi Oger Ltd. and the chip maker Qualcomm Inc., as well as by the group's focus on the provision of affordable wireless data services.

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