The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (14-February-2007)
    PACRA Maintains The Ratings of
Pakistan Mobile Communications Limited (Mobilink)
 

 
Analyst
Rana Muhammad Nadeem
(+92-42-586 9504)
usman@pacra.com

 

 

 









 




 

 

 

 

 

 

 

Disclaimer
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The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of Pakistan Mobile Communications Limited (PMCL) at “AA-” (Double A minus) and “A1” (A One), respectively. The rating of the secured TFCs of PKR 3,261 million has been maintained at “AA-” (Double A minus). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.

The ratings reflect PMCL’s market leadership in an increasingly competitive telecommunication industry. Continuing debt accumulation to fund aggressive network expansion has increased the proportion of borrowings in the capital structure of the company. However, respective coverages remain adequate and draw comfort from the company’s robust cash flows. Meanwhile, the ratings also recognize improving financial profile of Orascom Telecom – the parent of PMCL.

About the company:Pakistan Mobile Communications Limited (PMCL) is the country’s largest cellular telecommunication service provider engaged in installation, operation and maintenance of a countrywide GSM cellular network under the brand name of Mobilink. Orascom Telecom Group, parent group of PMCL, with a consolidated asset base of above US$ 7,700mln at end-Jun 06 and listed on the Cairo and Alexandria Stock Exchanges in Egypt and the London Stock Exchange, is a fast expanding telecommunication company serving emerging markets across the Middle East, Africa and South Asia.

About the TFC Issue: PMCL issued its first listed secured TFCs of PKR 3,261mln (inclusive of an exercised green shoe option of PKR 261mln) in May 2006. The issue has a tenor of seven years and principal is payable after a grace period of 4 years in 6 equal semi-annual installments. The issue is secured by way of first pari passu charges on two pools of assets.  The first pool comprises present and future receivables and collections, and the second comprises present and future movable fixed assets of the company. The TFCs carry a coupon rate of 6 months KIBOR plus 285bps, with no floor or ceiling, being payable on a semi-annual basis in arrears.
 
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