Global credit ratings agency Moody’s Investors Service has upgraded South African cellular operator Cell C’s Corporate Family Rating (CFR) and Probability of Default Rating to B3 from Caa1. <\/p>\n
Moody’s also raised the ratings on the USD\/EUR senior secured notes due 2012 to B2 from B3 and upgraded the ratings on Cell C’s EUR\/USD senior subordinated notes due 2015 to Caa2 from Caa3.<\/p>\n
This action concludes the review for a possible upgrade commenced on May 28, 2008. The rating outlook is stable.<\/p>\n
The action follows the partial buy back by Saudi Oger of the USD and EUR bonds issued by Cell C, at 101% percent of face value. <\/p>\n
The buyback offer was triggered by Saudi Telecom buying a 35% equity stake in Oger Telecom (which directly and indirectly owns 75% of Cell C), which was regarded by Saudi Oger as a change of control under the terms of the Cell C bonds, Moody’s said.<\/p>\n
Moody’s said that the decision to upgrade Cell C’s ratings reflects both Cell C’s improved operating performance and Moody’s attribution of greater expected support from its shareholder, Saudi Oger.<\/p>\n