Strong market position as the incumbent fixed-line telephony operator. Market leader in mobile telephony. Implicit support from the Kingdom of Saudi Arabia. High operating profitability margins in domestic market and very strong cash flows. Conservative financial policy. Domestic market liberalization, enabling greater competition and opening up of the market. Stagnant domestic revenues due to pressure on fixed-line business, and lower growth and increased competition in mobile telephony. Ongoing need for meaningful investments in fixed-line network. Potential mergers and acquisitions abroad could affect credit quality. The rating on Saudi Telecom Co. (STC), the incumbent fixed-line and leading mobile telecommunications operator in the Kingdom of Saudi Arabia (AA-/Stable/A-1+), is based on the company's stand-alone credit profile, which Standard & Poor's Ratings Services...
Companies mentioned in this report are:
- Saudi Telecom Co.
- Verizon Communications Inc.
- Saudi Basic Industries Corp.
- Emirates Telecommunications Corp. (Etisalat)
- Qatar Telecom (Qtel) Q.S.C.
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Research Type: Full Analysis