Fitch lifts Batelco to stable

Fitch Ratings said it revised the outlook on Bahrain Telecommunications Co.’s (Batelco) long-term issuer default rating to stable from negative and affirmed the issuer default rating at BBB-.

Fitch also said it affirmed the unsecured rating of Batelco International Finance No. 1 Ltd. at BBB-.

The outlook revision is driven by a significantly improved telecoms regulatory environment in Bahrain, which should allow Batelco to compete more effectively in its domestic market, the agency said.

The rating is notched up a level from the company’s BB+ standalone rating for government support, in case of need, Fitch said.

Although Batelco’s financial profile remains strong and the domestic operating environment is improving, the current standalone rating level takes into account the political and economic risk of the countries its international operations are in, the agency said.

Batelco’s ratings may not necessarily be impacted if Bahrain’s sovereign rating is downgraded, unless the sovereign rating becomes non-investment grade, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.