Summary: Saudi Telecom Co. Mar 12

Standard & Poors, March 2012

Abstract
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)
Action: Review

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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.

Saudi Telecom Co.,Saudi Arabia (Kingdom of)

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