S&P rates Singtel securities BBB

S&P said it assigned its BBB long-term issue rating to the proposed Singapore dollar-denominated perpetual securities to be issued by Singtel Group Treasury Pte. Ltd.

Singapore Telecommunications Ltd. will guarantee the subordinated perpetuals.

“We rate the proposed perpetuals two notches below the stand-alone credit profile of Singtel to reflect the subordination of the securities and the company’s ability to voluntarily defer coupon payments. Our long-term issuer credit rating on Singtel benefits from a one-notch uplift due to our view of a moderate likelihood of extraordinary government support from the Singapore government through Temasek Holdings (Private) Ltd. However, we do not believe the extraordinary government support will cascade to deeply subordinated instruments like the proposed perpetuals,” S&P said in a press release.

Singtel is expected to use the proceeds to refinance debt.

© 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.