Home / Fitch reaffirms Fastlink's "Investment Grade" International credit ratings

Fitch reaffirms Fastlink's "Investment Grade" International credit ratings

According to a recent rating report published by Fitch, an international rating agency, Fastlink (Jordan Mobile Telephone Services Company (JMTS)) has scored a B+ in its senior unsecured debt and a BBB- in local currency debt ratings.

According to a recent rating report published by Fitch, an international rating agency, Fastlink (Jordan Mobile Telephone Services Company (JMTS)) has scored a B+ in its senior unsecured debt and a BBB- in local currency debt ratings.

The rating agency pointed to the strong yet conservative financial profile of Fastlink and the company’s dominant position in the market vis-à-vis its competitor Mobilecom. As concerns, Fitch highlighted the cost of foreign currency shortage as problematic as well as the government’s stance in respect of revenue sharing.

However, the rating agency did attribute Fastlink's success to its introduction of prepaid “Ezlink” service, the repositioning of its postpaid tariffs and its ability to drive penetration and adapt its business strategy. “This has been to the extent that by July 2001, JMTS had total subscribers of 510,000 (split 27% postpaid and 73% prepaid) capturing circa 85% of the market share for total new additions,” according to the most recent report by Fitch.

The report observed that with a fixed line penetration of just 12% and with low mobile tariffs, mobile telephony is increasingly becoming the telephone service of choice among Jordanians. Fastlink is also portrayed in the report as actively establishing its mobile data services as the leading means for Jordanians to access data and the Internet. This being the main reason behind its launch of the first WAP service in the region and its ongoing preparations for the commercial roll out of GPRS by January 2002.

"Fitch's rating of our credit strength is an important affidavit to us. The agency's appraisal of our company and its attestation that our company is a well managed business with a low operational and financial risk will encourage local and international companies to partner with us in taking Jordan's telecommunications sector to new heights," commented Mr. Michael Dagher, Fastlink's President and CEO. The rating agency pointed out in its review of JMTS that the company will need to monitor the profitability of its prepaid clients.



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