Doha – Mubasher: Ooredoo on Monday announced that S&P Global Research has placed the company on CreditWatch with “negative” implications, while Fitch also set its long-term issuer default ratings “A+” on Rating Watch with “negative” implications.

Similarly, Ooredoo’s senior unsecured debt was also put on “negative” watch by both agencies. 

S&P Global forecast that Qatar’s diplomatic disputes with some Gulf and Arab countries will have a milder effect on Ooredoo than on other sectors.

The telecommunications company’s turnover is strong with a short-term rating of “A-2”, and its free operating cash flow generation from 2017 will benefit from lower capital expenditure requirements, S&P Global assured in a research note.

“Fitch expects Ooredoo to continue to operate within its target as leverage gradually declines over the next three years,” a statement by the company read.

Ooredoo reported a 33.5% year-on-year decrease in its profits in the first quarter of 2017, according to a bourse statement.

Net profits amounted to QAR 584.11 million ($159 million) in Q1-17, compared to QAR 878.64 million ($239.17 million) in Q1-16.