Ooredoo S&P Global Research and Fitch Update Ooredoo Ratings

June 19, 2017

Ooredoo today announces that S&P Global Research has placed its ratings on Ooredoo on CreditWatch with negative implications, while Fitch ratings placed Ooredoo’s “A+” Long Term Issuer Default Ratings on Rating Watch Negative. Furthermore, Ooredoo’s senior unsecured debt was placed on CreditWatch negative by S&P and on Rating Watch Negative by Fitch. 

The ratings placement on Ooredoo follow the announcement made by S&P Global on June 7, 2017 to lower its long-term rating on Qatar to “AA-“from “AA” and placing it on CreditWatch with negative implications. Similarly, Fitch placed Qatar’s sovereign ratings on Rating Watch Negative on June 12, 2017. 

S&P Global expects Qatar’s diplomatic issues with several Arab countries to have a smaller impact on Ooredoo than on other sectors of the economy.

In its research note, S&P Global confirms the company’s liquidity is strong, with a short-term rating of “A-2” and notes that Ooredoo’s free operating cash flow generation from 2017 is to benefit from lower capital expenditure requirements. Fitch expects Ooredoo to continue to operate within its target as leverage gradually declines over the next three years.