Summary: Saudi Telecom Co. Mar 12
- ID: 2084326
- March 2012
- Region: Saudi Arabia
- Standard & Poors
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 assesses as 'a', as well as on our opinion that there is a "high" likelihood that the Saudi government would provide timely and sufficient extraordinary support to STC in an event of financial distress. The rating on STC is supported by its leading market position in the liberalized Saudi telecoms market, with a difficult-to-replicate national network, implicit state support, high operating profitability margins in its domestic market, and strong underlying cash flows. STC's financial policy remains conservative, as the company has used debt only...
Companies mentioned in this report are: Saudi Telecom Co.,Saudi Arabia (Kingdom of)
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >