Moody’s has assigned a Baa1 senior unsecured rating to KT Corp’s proposed dual-tranche US dollar note offering.
The ratings agency expects the Korean operator to use the proceeds to refinance its existing debt, which means the transaction will be…
Moody’s has assigned a Baa1 senior unsecured rating to KT Corp’s proposed dual-tranche US dollar note offering.
The ratings agency expects the Korean operator to use the proceeds to refinance its existing debt, which means the transaction will be essentially leverage neutral while helping to term out its debt maturity profile.
Moody’s analyst Yoshio Takahashi said: “The Baa1 rating for KT’s proposed US$ notes reflects the company’s competitive strength, as the largest integrated operator by revenue in the Korean telecommunications market, with significant market shares across all spectrums of the quadruple-play strategy of fixed line, broadband, mobile, and TV.”
Moody’s anticipates KT’s adjusted debt/EBITDA, excluding its financial subsidiaries, to remain in the 2x-2.5x range within the next two years.
A few weeks ago, KT withdrew from the bidding process for a stake in state-owned Tunisie Telecom because of reported valuation differences.
