Moody’s has assigned an ‘Aa2’ rating to Nippon Telegraph & Telephone Corp (NTT)’s Y100bn (US$1bn) Series 63 bonds.
The bonds will mature in 2023.
“NTT’s Aa2 rating reflects the company’s sound credit profile, given its dominant market…
Moody’s has assigned an ‘Aa2’ rating to Nippon Telegraph & Telephone Corp (NTT)’s Y100bn (US$1bn) Series 63 bonds.
The bonds will mature in 2023.
“NTT’s Aa2 rating reflects the company’s sound credit profile, given its dominant market position in Japan’s telecommunications market, its advanced technological abilities, and its stable financial profile. Its rating, however, is constrained by its relatively high leverage for its rating,” the ratings agency said.
“Additionally, the mature and competitive market in which it operates poses a challenge to grow revenue, improve margins and reduce debt. Offerings from smaller players continue to exert price pressures and we expect this to remain a key factor for NTT’s rating over the next few years.”
In mid-February, the Japanese company had issued US$500m worth of 2.15% bonds due 2020 under its US$10bn euro medium term note programme.
NTT, which is 32.59%-owned by Japan’s Ministry of Finance, owns NTT Docomo, the country’s largest mobile operator by customer numbers.
NTT was not immediately available for comment.
