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Etisalat’s Investment Grade Ratings Maintained

ABU DHABI - Three credit rating agencies including Moody’s, Fitch and Standard & Poor’s have maintained their earlier ratings on Emirates Telecommunication Corporation or Etisalat, an official said.

The telecom’s investment grade ratings are considered among the highest of globally rated telecommunications companies. The assigned ratings are — Moody’s Investors Service Aa2; Fitch Rating AA-; and Standard and Poor’s A+. The ratings demonstrate confidence in Etisalat’s profitability, cash flow, financial policies, and a portfolio of overseas assets, the value of which has increased significantly.

Etisalat’s strong credit ratings reflect its excellent relationship with the UAE government which owns 60 per cent of the company.

Salem Ali Al Sharhan, Etisalat’s Chief Financial Officer, said that the maintenance of ratings from the three agencies at the same level as the inaugural ratings, is a demonstration of Etisalat’s strong operating performance and prudent financial management during the course of last year.

Telecom’s strong credit ratings will help further diversify its funding sources and enhance its negotiating position when securing future financing from debt or capital markets, he added.

Etisalat Group earned a consolidated net profit of Dh4.593 billion in the first half of the year, down against Dh5.045 billion which included profit on sale of shares in Mobily of Dh892 million after federal royalty.

However, the net profit after federal royalty for the six months ended June 2009 is 11 per cent higher at Dh440 million. The company’s net revenues rose 10 per cent to Dh14.744 billion in the first six months, compared with Dh13.408 billion. Total assets grew to Dh67.245 billion — an increase of seven per cent up against Dh62.918 billion in the half of last year.

· haseebhaider@khaleejtimes.com