Moody’s downgraded Mobilink’s ratings to B2 – Alfalah Securities Limited

Karachi, July 17, 2012 (PPI-OT): Moody’s downgraded the corporate family rating of Pakistan Mobile Communications Limited (Mobilink) to B2 from B1 and the senior unsecured rating to Caa1 from B3.

According to Alfalah Securities Limited, the rating agency has also changed the outlook of the company to negative from stable. It believes that Mobilink is predominantly Pakistan based company deriving its revenues locally; it is exposed to risks shared with the sovereign risks. The step was taken after Moody’s downgraded Pakistan’s bond rating to Caa1 from B3. The downgrading would have a negative impact on the yields of Mobilink’s loans / TFCs.