From negative to stable: Moody’s revises Mobilink’s rating

The rating action reflects Mobilink’s stronger fundamental credit quality when compared to the sovereign.

HONG KONG: Moody’s Investors Service has revised Pakistan Mobile Communications Limited’s (Mobilink) rating from negative to stable on the B2 corporate family rating. The rating action reflects the outlook change for Pakistan’s Caa1 sovereign rating and Mobilink’s stronger fundamental credit quality when compared to the sovereign. On 14 July 2014, Moody’s affirmed Pakistan’s Caa1 foreign currency government bond rating and Caa1 issuer and senior unsecured ratings. Moody’s also revised the outlook on Pakistan’s sovereign ratings to stable from negative. “Despite its stronger fundamental credit quality, Mobilink’s B2 corporate family rating is constrained by the two-notch differential between its own rating and the sovereign’s Caa1 rating,” says Yoshio Takahashi, a Moody’s Assistant Vice President and Analyst.

Published in The Express Tribune, July 25^th, 2014.

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