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

08.01.2019
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, with «in development» outlook. This credit rating grades represent sufficient level of creditworthiness, and the outlook indicates the probability of change credit ratings during the year. Credit ratings were deduced from the Watch List, where are listed the ratings which can be revised in the short term.

There is still uncertainty regarding the future activities of «Ukrtelecom» PJSC, related to the possibility of its return 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 «Ukrtelecom» PJSC by 9 months of 2018 was amounted to UAH 4,514.8 mln, which in 2.4% less in comparison with the results of the same period of the previous year. The result of the activity was net profit in the amount of UAH 449.5 mln (-29.6%).

The Issuer retains 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. At the same time, the Issuer's ability to continue uninterrupted operations depends on the willingness of creditors not to demand early repayment of loans and continue to provide support by refinancing existing loans and prolonging the maturity of debts.

«Ukrtelecom» PJSC remains the largest operator of telecommunications services in the Ukraine. The Company provides a wide range of services for households and businesses, including: local (urban and rural), intercity and international telephone services, 3-G mobile communication services, computer communication services (including Internet access), telegraph communication and wire broadcasting services, as well as services of providing telecommunications channels for use. The Issuer holds leading positions in the fixed line market and broadband Internet access, which are provided by its own powerful transport telecommunications network, covering all regions of the country. Also, prospects of the telecommunication services market cause intensified competition. There is a decline in 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 2015-2017 and 9 months of 2018, 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