S&P downgrades Kazakhtelecom to 'BB' with 'negative' outlook, following sale of subsidiary to Qatari holding companyInternational rating agency S&P Global Ratings has downgraded Kazakhtelecom JSC's long-term credit rating to 'BB' from 'BB+' and revised the outlook to 'negative', the agency said in a statement.The company's national scale rating remains at 'kzA+'.It said the downgrade followed the sale of mobile operator Mobile Telecom-Service, which owns the Tele2 and Altel brands, to Qatari holding Power International Holding."We expect revenues to decline by around 20% and EBITDA by 50% in 2025, resulting in a decline in EBITDA margin from 44% to 27-28%," the agency said.As reported, on 14 January 2025 Kazakhtelecom closed the deal to sell its subsidiary Mobile Telecom Service LLP (Tele2/Altel brands) to Qatari Power International Holding (PIH). Earlier, Kazakhstan's Ministry of Digital Development, Innovation and Aerospace Industry said the deal was worth $1.1 billion. The agreement between the parties to the transaction was signed in February 2024.Following the completion of the deal, Kazakhtelecom CEO Bagdat Musin said that the event had taken place within the framework of the Kazakh President's order to demonopolize the mobile market. As a result, 3 mobile operators in Kazakhstan - Tele2/Altel, Kcell and Beeline - will form a competitive market, which should have a positive impact on the quality and price of services.Mobile Telecom Service LLP is a 5G high-speed communications provider in Kazakhstan, established in 2004. The company has approximately 2,000 employees and operates more than 140 retail outlets.Kazakhtelecom holds a dominant position in the local telecommunications market. The company owns 51% of mobile operator Kcell and 100% of Mobile Telecom Service LLP. Kazakhtelecom's main shareholders are the state fund Samruk-Kazyna (71.32%) and CHK Telecom Systems Ltd (8.1%), according to data from the Kazakhstan Stock Exchange as of 1 January 2010. (ICE ALMATY)

Fonte notizia: INTERFAX