Fitch downgrades Batelco to BB-

Fitch Ratings said it downgraded Bahrain Telecommunications Co’s (Batelco) long-term issuer default rating to BB- from BB+.

The outlook is stable.

The agency also downgraded the unsecured rating of Batelco International Finance No. 1 Ltd. to BB- from BB+.

The action follows Fitch's March 1 downgrade of Bahrain's long-term foreign- and local-currency issuer default ratings to BB- from BB+. The outlook is stable.

Fitch said Batelco's BB- issuer default rating is based on its standalone rating of BB+, which reflects the company's leading domestic position in a competitive Bahraini market.

“The standalone rating also takes into account the political and economic risk of the countries in which Batelco has international operations. However, Batelco's rating is limited by Bahrain's BB- sovereign rating as the Bahraini government owns 77% of the company and exerts strong control over it,” the agency said in a news release.

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