Pakistan Credit Rating Agency Limited Revises Ratings of Worldcall Telecom Limited

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has revised the long-term and short-term entity ratings of Wordcall Telecom Limited (WTL) to “BB+” (Double B Plus) and “A3″ (A Three) respectively [Previous: BBB-/A3].

The ratings of the secured TFC issue of PKR 4,000mln has also been revised to “BB+” (Double B Plus) [Previous: BBB]. The rating action has been triggered by the latest information made available, as per which, WTL is pursuing grant of grace period of 75 days from its lenders to extend the TFC redemption date to June 21, 2012.

The original redemption of the TFC-III instalment (PKR 717mln) falls on April 7, 2012, which the company intends to extend on account of procedural delays in committed injection of funds by the sponsor. A timely grant of grace period by lenders is critical for holding the ratings, which are being kept under Rating Watch.

The management is pursuing a financing arrangement of USD 35mln which is being sponsored by its parent – Omantel. However, the continuous delays by Omantel in monetizing its commitment to support WTL has raised concerns. Meanwhile, the business and operating environment for the company continues to remain challenging.

For more information, contact:
Hammad Rashid
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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