• IP addresses are NOT logged in this forum so there's no point asking. Members are encouraged to install GOM or HOLA or TUNNELBEAR for an added layer of protection.

    The SEX forum is HERE so please stop asking.

Singtel expects to hit below Lehman Crisis Lows

JustLikeThis

Alfrescian
Loyal
#1
Singtel and Optus’ outlook downgraded to negative: Moody’s
https://www.ig.com/sg/news-and-trad...outlook-downgraded-to-negative--moodys-190306

Singapore Telecommunications Limited (Singtel)’s ratings outlook was revised from ‘stable’ to ‘negative’ by ratings firm Moody’s Investors Service on Tuesday as a weakening operating and financial profile, and increased competition in Australia and Singapore will prove to be a challenge for the telco to have a 'meaningful improvement' in its earnings over the next 1 year to 1.5 years.

Moody's vice president and senior analyst Nidhi Dhruv said in a report that the ratings agency does not expect a meaningful improvement in Singtel's underlying earnings before interest, tax, depreciation and amortization (EBITDA) over the next 12-18 months, ‘as intense price competition in Singapore and Australia is leading to lower average revenue per user (ARPU) and profitability in both markets.’

In addition, the partial or full subscription to Singtel’s portion in its associate Bharti Airtel’s INR250 billion (US$3.5 billion) rights issue would ‘further weaken its metrics and keep net leverage above our tolerance for the rating, absent any capital restructuring initiative’, Mr Dhruv added.

The exposure in the additional equity injection to Bharti would increase Singtel’s gross leverage to around 2.3 to 2.5 times, net leverage around 2.2 to 2.4 times, and cash balances of around S$400 to S$450 million, which is not within the ratings agency’s expectations for the telco’s current A1 rating. Singtel has a 39.5% stake in Bharti.
 

JustLikeThis

Alfrescian
Loyal
#2
Singtel’s Optus outlook downgraded to ‘negative’
In a subsequent report on Wednesday, Moody’s also downgraded Singtel’s wholly-owned subsidiaries Optus and Optus Finance from 'stable' to 'negative', due to the change in outlook for Singtel. Optus is the second largest integrated telco operator in Australia.

The ratings agency said the outlook for Optus reflects the view that the weakening financial profile in Singtel may affect its ability to support its subsidiary. The agency added that it may downgrade the ratings of Optus and Optus Finance if the credit rating of Singtel is lowered.
 

JustLikeThis

Alfrescian
Loyal
#3
In addition, the partial or full subscription to Singtel’s portion in its associate Bharti Airtel’s INR250 billion (US$3.5 billion) rights issue would ‘further weaken its metrics and keep net leverage above our tolerance for the rating, absent any capital restructuring initiative’, Mr Dhruv added.

The exposure in the additional equity injection to Bharti would increase Singtel’s gross leverage to around 2.3 to 2.5 times, net leverage around 2.2 to 2.4 times, and cash balances of around S$400 to S$450 million, which is not within the ratings agency’s expectations for the telco’s current A1 rating. Singtel has a 39.5% stake in Bharti.
GIC to invest $700 mn in Bharti Airtel
https://www.vccircle.com/gic-to-invest-714-mn-in-bharti-airtel
Singapore sovereign wealth fund GIC Pte. Ltd plans to invest Rs 5,000 crore (US$700 million) in Bharti Airtel Ltd through a rights issue of shares, the telecom operator said on Thursday. Billionaire Sunil Mittal-led Bharti Airtel said in a stock-exchange filing that its promoters--Bharti Group, Bharti Telecom and Singapore Telecommunications Ltd (Singtel)--will also take part in the rights issue.

Singtel to buy US$525 mln worth stock in India's Bharti Airtel
https://www.nasdaq.com/article/sing...-stock-in-indias-bharti-airtel-20190307-00023

March 7 (Reuters) - Singapore Telecommunications Ltd (Singtel) said it will buy roughly $525 million worth Bharti Airtel stock as part of the Indian telecoms operator's plan to raise $4.6 billion through new shares and bonds. The fund raising plan, announced last month, is aimed at cutting debt and shoring up Bharti Airtel's balance sheet as the Indian telecom industry reels from the impact of a price war triggered by the entry of Reliance Jio Infocomm Ltd.
 

JustLikeThis

Alfrescian
Loyal
#5
GIC picks up Singtel’s tab sinking S$1b into “junk-rated” Indian telecom company
https://www.theonlinecitizen.com/20...g-s1b-into-junk-rated-indian-telecom-company/


Currently, the single biggest shareholder of Bharti Airtel is Singtel, holding 39.5%. It has decided to renounce part of its rights to be picked up by GIC. As a result, Singtel’s stake in the Bharti Airtel will fall to 35.2% after the rights issue, while GIC will own about 4.4% for the first time. Previously, Singtel had been aggressively increasing its stake in Bharti Airtel from around 33% to 39.5% between August 2016 and February 2018. The reduced contribution from SingTel could be because it was wary of funding the infusion by adding debt to its books, analysts said.

Moody’s downgrades Bharti Airtel to “junk” status
Last month, Bharti Airtel’s credit rating was downgraded for the first time by Moody’s to below investment grade status as a bruising tariff war with India’s newest wireless operator Reliance Jio continues to hurt its revenue and profitability.

 

syed putra

Alfrescian
Loyal
#6
Why they go to india telco or for any business. How many foreign telcos got their fingers burnt in india. Licenses cancelled based on flimsy corruption chsrges. Hefty taxes that came from nowhere. Only on foreign telcos and not local ones.
 

JustLikeThis

Alfrescian
Loyal
#7
Why they go to india telco or for any business. How many foreign telcos got their fingers burnt in india. Licenses cancelled based on flimsy corruption chsrges. Hefty taxes that came from nowhere. Only on foreign telcos and not local ones.
Telcos will get burnt. 5G will cost them over US$3 trillion to setup. More base station instllation to support increased speed (and shorter ranges). It is all about frequencies to handle more antennas.
 

borom

Alfrescian (Inf)
Asset
#8
Why not DBS steps in as its very bullish on India?
Before long Singtel's, DBS and SIA biggest exposure will be in INDIA
How about GIC/Temasek -think where your CPF monies is going and why they may raise the withdrawal age and min sum
 

melzp

Alfrescian
Loyal
#9
So, Singtel promised 2-yr consistent dividend, being over, should
be less this coming 2019 Aug.
When the going get tough, the CEO Chua got to be tougher.
 

JustLikeThis

Alfrescian
Loyal
#12
“Post investments in Bharti, Moody’s expects Singtel’s gross leverage (under the dividend method) to increase to around 2.3x-2.5x. With cash balances, net leverage will be around 2.2x-2.4x, which is not within Moody’s expectations for Singtel’s current A1 rating," Nidhi Dhruv, vice president and senior analyst at Moody’s Investors Service, said in a note on 5 March.

When the going gets tough, some get going and some get out.

It’s not clear if Singtel will receive any of the nearly $250 million in value it is giving up to GIC, by letting it buy shares in the rights issue at this substantial discount. If not, GIC has been granted a fairly sweet deal.

https://www.livemint.com/market/mar...t-tune-on-its-airtel-stake-1552253617947.html
 
Top