Moody’s may downgrade Omantel

Moody's Investors Service said it placed the Baa2 long-term issuer rating of Oman Telecommunications Co. (Omantel) on review for downgrade.

The agency said the decision was prompted by the announcement that Omantel had signed a share purchase agreement to acquire 12.1% of Mobile Telecommunications Co. for a total cash consideration of $1.35 billion.

Moody's said it expects adjusted debt/EBITDA will increase to levels after the acquisition that are no longer commensurate with the current rating.

The agency said its review will focus on assessing the overall impact on Omatel's credit profile including the funding plans in support of the transaction.

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