Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Batelco Yield Jumps Most Since June on S&P Junk Rating Prospect

Sept. 17 (Bloomberg) -- Bahrain Telecommunications Co.’s bonds declined, pushing the yields up the most in three months, after Standard & Poor’s said the phone operator’s rating may be cut to junk.

The yield on the 4.25 percent, $650 million bonds maturing in May 2020 jumped 36 basis points, the most since June 24, to 6.18 percent at 2:11 p.m. in Manama, the capital of Bahrain. The company known as Batelco sold the bonds in April to fund the purchase of Cable & Wireless Communications Plc’s Monaco and islands businesses. S&P placed Batelco’s BBB- rating, the lowest investment grade, on credit-watch negative.

Batelco is “suffering a greater loss of market share and reduction in margins than we anticipated,” S&P analysts, led by London-based Hina Shoeb, wrote in a research note today. “Higher market competitiveness suggests to us that the importance of Batelco’s role in Bahrain as a provider of key communications infrastructure may be decreasing.”

The state-controlled company in December said it will buy CWC’s business for $680 million as it sought to diversify from the home market. Batelco reported a 22 percent drop in first-half profit due to expenses linked to the acquisition and related financing.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.