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IBI-Rating has affirmed the credit rating of «Ukrtelecom» PJSC and its issue of interest-bearing bonds

15.01.2020
IBI-Rating informs on affirming of the long-term credit ratings of «Ukrtelecom» PJSC and its issue of interest-bearing T-V series bonds at uaBBB grade, the rating outlook is «evolving». These credit rating grades represent a sufficient level of creditworthiness, and the outlook indicates the probability of change credit ratings during the year.

There is still uncertainty regarding the future activities of «Ukrtelecom» PJSC, related to the possibility of its getting back to state ownership, as well as the arrest of shares (in order to ensure the execution of the future court decision, if it is made in favor of the claimant in a dispute concerning the recovery of the value of bonds and interest income on them from the majority shareholder). In addition, «Ukrtelecom» PJSC is party to litigation, the outcome of which may significantly affect in its financial condition.

Net income of PJSC «Ukrtelecom» by the results of 9 months of 2019, it amounted to UAH 4 412.5 million, which is 2.3% less than in the same period of the previous year. The decline is driven by a further decline in fixed-line telephony revenue, while revenue from computer-related services increases. Operating income decreased to UAH 728.1 million (11.3%), net profit amounted to UAH 428 million (-4.8%).

The Issuer has a sufficiently high share of equity in the general structure of sources of financing activities. The level of debt load of «Ukrtelecom» PJSC is assessed as acceptable.

«Ukrtelecom» PJSC remains the largest operator of telecommunications services in the Ukraine. The Issuer holds leading positions in the fixed-line and broadband Internet access market, which is provided by its own powerful telecommunication network covering all regions of the country. At the same time, the perspectivity of the telecommunication services market of leads to increased competition. There is a further decrease in the demand for fixed-line services and its gradual replacement by mobile communication services, which corresponds to the global trend.

In order to conduct the analytical research the materials provided by «Ukrtelecom» PJSC have been used, including: the annual financial statements for 2016-2018 and 9 months of 2019, background information on activities of «Ukrtelecom» PJSC, information on the issue of bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua