Jordan’s Mobile Telephone Services Company Fastlink showed promising results in senior unsecured debt and local currency debt categories, according to a recent rating report published by the international rating agency Fitch. Both categories reflect a stable rating outlook based on the company’s strong cash generating ability within Jordan.
Fitch analysts noted that Fastlink has maintained its position as the leading mobile operator in Jordan in spite of the competition witnessed in the Jordanian mobile telephone services market. The rating agency attributed Fastlink’s success to its introduction of prepaid services, the repositioning of its postpaid tariffs as well as its operation of a technically superior network.
The report observed that with a fixed line penetration of just 12 percent and with low mobile tariffs, mobile telephony is increasingly becoming the telephone service of choice among Jordanians.
Fastlink is also portrayed as the leading means for Jordanians to access data and the Internet. This being the main reason behind its launch of the first Wireless Application Protocol (WAP) service in the region and its ongoing preparations for the commercial roll out of General Packet Radio Service (GPRS) by January 2002.
The rating agency added that Fastlink’s financial priority has been strong EBITDA growth (Earnings Before Tax, Interest, Depreciation and Amortization), attributed to the rapid increase in subscriber numbers, which now stand at over 600,000 subscribers. That and a low-level of debt, remaining modest at 35 million Jordanian Dinars ($49.3 million), have resulted in a strong and discreet financial profile.
The Fitch agency has a rating presence in 75 countries and 40 offices worldwide. Fitch covers the financial institutions, banks, corporates, loan products, structured finance, insurance, sovereigns and public finance markets worldwide. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
