Ratings agency Moody’s has assigned a provisional (P)B1 senior unsecured rating to a proposed US$300m bond issue by Banglalink.
The senior notes by the second largest Bangladeshi mobile operator will be due in 2019.
Moody’s noted the issue would…
Ratings agency Moody’s has assigned a provisional (P)B1 senior unsecured rating to a proposed US$300m bond issue by Banglalink.
The senior notes by the second largest Bangladeshi mobile operator will be due in 2019.
Moody’s noted the issue would help Banglalink to ease pressure on liquidity, although cautioning that the issue and operating cash flow are likely not enough to cover debt maturing over the next 12 months, which amount to BDT32bn (US$411.7m), and capex expected to exceed BDT20bn (US$257.3m).
“Banglalink is likely to depend on funding from its parents or from local banks to meet its financing gap,” Moody’s said. Banglalink is part of Global Telecoms Holding (GTH), a subsidiary of VimpelCom.
“While Banglalink’s fundamental credit is weakly positioned for the B1 level, the continued operating and financial support from GTH, as well as its ultimate parent, VimpelCom (Ba3 stable), provides some comfort,” Moody’s added.
